Canterbury farmers will be the first to have the opportunity to sign up for fertiliser from independent Australian company Marnco as it unloads its first consignment of superphosphate and DAP at its Timaru site this week.
Almost 25,000 tonnes of Vietnamese-sourced superphosphate and DAP has been delivered in the company’s entry to the New Zealand market on the bulk freighter African Goshawk, delivering to the Timaru and Tauranga sites.
Marnco commercial manager Jamie Thompson said the company is excited to be delivering to NZ for the first time, and farmer interest in the product has been high.
He said sales so far extend in value to seven figures.
“The product looks good. We can now validate ourselves in the market, that we have delivered on what we promised. This is a very high quality product, well granulated and with minimal dust. We think clients will be impressed with what we have to offer.”
He said the superphosphate is notable for its low cadmium level compared to most of the product sold in NZ.
The company has established a presence in Australia over the past five years, claiming 20-25% of the Victorian-South Australian markets and selling 400,000t last year.
It enters the NZ market claiming it will be able to sell fertiliser 10-15% below current rates.
Prospects of a price war with existing fertiliser companies Ballance and Ravensdown look to be heightened, with both companies releasing revised pricing for the super and DAP products in recent days.
“So, we have already had an effect upon what farmers are paying for their fertiliser, which was our intention.”
Thompson is confident that if farmers chose to support the company, future shipments will be assured.
“We are not even expecting them to purchase all their fert [from us]. Even if it is a percentage, we can guarantee we will continue coming.”
