Global events were also having an effect on the situation, Allen said.
"The Ukraine conflict, what's happened with Covid and supply chains out of China ... it's putting a lot of pressure out there."
Farmers were contending with increasing costs on everything, from feed to fertilisers to petrol, wages and animal health, right through to general maintenance of machinery and equipment, Allen said.
"All of these things are increasing for our farmers - and running a farming business is about margins - so we do what we can here at Farm Source to help our farmers through it."
Farm Source played "a really important role" in supporting farmers, with 66 stores across New Zealand, Allen said.
The Farm Source team had managed to keep up this support during challenging times.
"Through Covid and through the disruptions we've seen over the last couple of years, the team have been working really hard on managing those impacts and ensuring our farmers get what they need at a great price."
Farm Source had a number of strategies to continue to meet farmers' needs, including limiting sales, he said.
The team were also focused on magnesium supply, which was essential on-farm around calving. Supply chain disruption had made this challenging, Allen said.
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"Pre-Covid, it was about 11 weeks lead time coming out of China - we're looking at anywhere from four to six months now.
"So we've taken a lot of active steps to get that product into the country early - to have it on the ground and to ensure that our farmers get what they need."
Farm Source was also keeping an eye on commodity prices and had been working hard to alleviate pressure in this area, Allen said.
"We launched our Certainty campaign and we're running that through until the end of October."
The timing of the campaign was important for farmers, he said.
"There's a lot of spend going on-farm to get ready for calving and to get ready for the season ahead.
"What we've done is say - what are those really important products our farmers need on-farm through this period? and we've done our very best to lock those prices right through to the end of calving to give our farmers some certainty."
Where possible, Farm Source hoped to be able to drop prices further, but in the meantime, farmers could be certain they wouldn't go up, he said.
It was great to be able to offer farmers peace of mind, Allen said.
"They can go into calving and focus on their farm and not have to worry too much about price."
