Fertiliser co-op hoping to cane Queensland rival

New Zealand fertiliser co-operative Ravensdown is extending its exports to Queensland, after obtaining orders for nearly 50,000 tonnes, mostly from sugarcane growers.

"We've secured close to the target tonnage required and wanted to repay the faith the growers have shown in us," said Rodney Green, chief executive of Ravensdown.

He expects more growers to switch to Ravensdown once shipments start in July.

The shipments will be through the ports of Mackay, Townsville and Brisbane.

Ravensdown is starting a six-year development plan on Australia's eastern seaboard, initially supplying a limited range of key products on to growers who prepaid.

Gradually extending this to the full-service Ravensdown model over a period would give the company an immediate customer base with extremely low risk, Green said.

Growers will become fully paid-up shareholders over two years to ensure there is no "financial drag" on existing shareholders.

Fertiliser sales in the Queensland market are currently dominated by Incitec Pivot.

Queensland Canegrowers Organisation chief executive Ian Ballantyne told the Daily Mercury at Mackay that cane growers were the key agitator for increased competition in Queensland fertiliser sales and had led the charge to attract the new player to the market.

"By supporting the Ravensdown venture, farmers across Queensland and northern New South Wales have vowed not to continue to be at the bottom of the food chain when it comes to fertiliser prices," he said.

Ravensdown already exports to West Australian farmers after taking over the United Farmers Co-operative there this year. NZPA