The Country 20/07/26: Mike Whitty talks to Jamie Mackay

Ravensdown’s chief operating officer updates us on the fertiliser fallout from the ongoing Middle East war and what it means for New Zealand farmers this spring. 

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Episode Transcript

Speaker 1 (00:00):
Mike Whitty is the chief operating officer for Ravens Down
of course, one of the two big fertilizer companies in
this country. Now, this Middle East war is doing no
one anywhere in the world any good as far as
I can see, and it's certainly going to bite hard
this spring for New Zealand farmers. How hard? Let's ask
the man himself. This Middle East situation is getting worse

(00:24):
rather than better, Mike, what sort of effect is that
going to have on fertilizer and the cost thereof this spring?

Speaker 2 (00:31):
Good afternoon, Jamie. Look, we've already seen the impact over
the last three or four months from the Middle East,
but it's continuing and I suppose that's the ongoing impact
and uncertain We're in a very good position, you know,
got very good stocks in country or on the water,

(00:54):
so where it ends up is still a question mark
in price wise. Look, you know, prices escalated significantly for
nitrogen products that've come off quite a lot, and now
we're seeing it starting to go back up again, So
there's uncertainty there. But for the spring, we're in a
very good position.

Speaker 1 (01:14):
I guess it's a bit like the fuel situation. It's
not a supply issue, it's a price issue.

Speaker 3 (01:19):
Now.

Speaker 1 (01:20):
A number that i'd read reported was that for the
average dairy farmer, I guess we'll use the dairy industry
because it's our biggest farming industry, the forecast for fertilizer
prices for this spring would be up by an average
of forty three percent. Does that number still hold true
or will it be more?

Speaker 3 (01:39):
Yeah?

Speaker 2 (01:39):
Look, I think that that's a pretty good indication overall,
and it depends on the product being consumed, of course,
But nitrogen prices have gone up quite significantly soften recently.

Speaker 3 (01:54):
But again with this.

Speaker 2 (01:57):
With the conflict kicking off again, we're still this that
move up again. But you know, I think we're okay
for the spring, but volatility and uncertainty is going to
be an ongoing challenge for the industry.

Speaker 3 (02:10):
And there's you say, energy is a key component of that.

Speaker 1 (02:14):
And it's not just the Middle East war or conflict
as Trum calls it, that's causing a New Zealand farmer's issue.
This Russia Ukraine thing is starting to blow up, no
bad pun intended either.

Speaker 2 (02:27):
Yes, you're right, Jamie, it's having quite a significant impact
on what we're seeing is Ukraine's been very successful with
drone attacks within Russia and going over getting up to
over a thousand kilometers away from the borders.

Speaker 3 (02:44):
And what that's focused on is.

Speaker 2 (02:48):
Energy, so oil, fertilizer, infrastructure because some of that's used
in explosives and a lot of the infrastructure. So what
we're seeing there is, you know, Russia to some countries
is a significant explorer of energy and fertilizer and that's
directly been impacted now, so again reducing supply from a

(03:11):
world point of view.

Speaker 1 (03:13):
Because we manufacture super phosphate, correct me if I'm wrong
here in New Zealand. We do, don't we?

Speaker 3 (03:18):
Yes, that's okay.

Speaker 1 (03:19):
So does it stand to reason that there's not going
to be as well an issue there?

Speaker 2 (03:25):
Yeah, Well, the positive about that is that we get
our sulfur out of Canada from a long term supply
of the year, and our possate rocks are coming out
of Australia and Africa. So, you know, other than the
impact on price on sulfur, because fifty five percent of
the world to trade is not available at the moment,

(03:48):
but you know, there's a clear price impact, but availability
is strong.

Speaker 3 (03:52):
We're in a really good position.

Speaker 1 (03:54):
Okay, a couple to quickly finish on. Can farmers buy
now and save money later you forward by and try
and at least lock in the market at these levels.

Speaker 2 (04:04):
Yeah, Look, people can purchase now if they want to
make that decision. Look, I think that where the prices
in market are now you are about reflective on what
the international prices are today.

Speaker 3 (04:23):
But you know there is clearly.

Speaker 2 (04:25):
A risk with escalation in the Middle East impacting further.

Speaker 1 (04:30):
And just a final word, congratulations to the team at
Ravenstown whoever made the decision it might have been you,
Mike Whitty, the Chief operating officer to sponsor sponsor that
most iconic of Canterbury christ Church events, the Canterbury A
and P Show. I'm sure Sir David Carter will be
very pleased.

Speaker 2 (04:48):
I'm sure he is, and we're very proud to be
a sponsor. You know, we've been there for a long
time so we see it as an important part of
the agricultural industry in New Zealand.

Speaker 3 (05:00):
So yeah, happy to help out.

Speaker 1 (05:02):
That's a great event.

Speaker 3 (05:03):
Love it.

Speaker 1 (05:03):
Mike Weddy from Ravenstown, thanks for your time

Speaker 3 (05:06):
Excellent Thanks Joming