MEDIA RELEASE


21 September 2011: Ravensdown to the rescue: freezes spiralling urea cost – for now

Ravensdown has emerged the good-guy today after announcing that they will be holding the price of urea for as long as they can, following news of price spikes which have driven prices up a whopping 60% in a few short months.

Peak group CANEGROWERS says the world price of urea had increased from FOB US$335 in April 2011 to US$535 now. This is a $200 per tonne increase. At the same time the US dollar has softened from a cross-rate of $1.10 in April 2011 to $1.02 today.

The price freeze was welcomed by CANEGROWERS Chairman Alf Cristaudo who said Ravensdown had decided to hold prices at current prices to support Queensland cane growers as they recover from catastrophic weather events including cyclones and floods.

But he warned growers need to take advantage of the current price freeze as quickly as possible, as further shipments of urea may impose increase prices later this year.

“This is a big move, and they will not be able to hold it for long. CANEGROWERS is urging growers to take advantage of this window now, remembering that this is a numbers game: the more volume shareholders purchase, the more Ravensdown are able to pass on a lower price to shareholders," said Cristaudo today.

In a statement today, Ravensdown Fertiliser Australia said “We recognise that your yields are down after two tough seasons, and we hope this urea price hold and change of shareholder structure is of benefit to you". But in a bold move, the General Manager - Australia for the group, Alan Thomson, also indicated that Ravensdown Fertiliser Australia is changing its shareholding structure to attract a wider shareholder base.

“The changes will make it easier for new shareholders to join, however only current shareholders will get the foundation member rebate," said Thomson of the change.

Ravensdown is becoming increasingly well known for fertiliser at the lowest possible sustainable cost after their entry to the market on the eastern-seaboard just two years ago was credited for bringing the price of fertiliser down almost overnight. Since then, their co-operative style approach, based on transparency and grower ownership has attracted farmers in droves.

CANEGROWERS urges any primary producer wanting to access Ravensdown fertiliser to take full advantage of this price freeze on urea. Existing customers should contact Ravensdown and any grower or primary producer wanting to come on start up an account with Ravensdown should contact their local CANEGROWERS office to order.


Media comment: Alf Cristaudo | CANEGROWERS Chairman| 041 818 1204
More information: Suzi Moore | CANEGROWERS Communications | 0427 641 239 or 07 3864 6444