Hamilton-based soil scientist Gordon Rajendram wants more competition and innovation in the fertiliser industry to bring product prices down.
Rajendram sees, “a severe lack of competition leading to ongoing high fertiliser prices, stifled innovation, and a worrying lack of change in the fertiliser sector”.
Dr Gordon Rajendram.
He says the fertiliser market in New Zealand is dominated by a few key players, resulting in limited choices for consumers and consistently high prices.
“This monopoly-like situation sharpens awareness but also makes companies lazy, relying on their established market positions rather than striving for improvement,” he said.
The chief executive of the Fertiliser Association, Vera Power has pushed back on Rajendram’s assertions.
“The NZ fertiliser market is an open and free market, and new entrants are free to come on the market at any time, as they do. The key issue is that any supplier needs to meet farmers’ needs and expectations,” Power said.
“Fertiliser price is mainly driven by global supply chains. Supply chains have been challenging for a number of years for reasons such as shipping prices and sanctions on Belarus and Russia. However, the good news is that while shipping prices are high, global product prices have been coming down, bringing potential relief for farmers who are feeling squeezed.”
Rajendram says many companies are selling the same products they did in the 1950s, with little to no innovation.
“Super phosphate, has done more for New Zealand’s economy than any politician ever has, but it’s time for change.”
He said farmers were starting to look for alternatives due to high prices and question marks over environmental aspects of traditional fertiliser products, he said.
“A prime example of the benefits of competition can be seen in the dairy industry, where the presence of multiple companies has led to significant advancements in product quality and efficiency.
“The fertiliser industry could learn a lot from this. Innovation is essential for addressing the evolving needs of modern agriculture, particularly in a country like New Zealand, where farming is a cornerstone of the economy,” Rajendram said.
“The New Zealand fertiliser industry needs a shake-up. More competition will lead to better products, fairer prices, and ultimately, a stronger agricultural sector. It’s time for fertiliser companies to stop resting on their laurels and start driving the innovation that our farmers need.”
