The unparalleled, 100% price increase in DAP/MAP in just a few short months has generated shock waves throughout agriculture, as reality bites and growers begin to understand that peak oil means peak prices. Prices for urea, pesticides and diesel have also risen considerably but it is a special set of circumstances that is responsible for the massive blow-out in prices for the world’s largest selling fertilisers, DAP and MAP. Key contributors include a 400% increase in raw material costs combined with reduced manufacturing plants (linked to rationalisation) and huge demand due to the US ethanol boom. Energy price hikes have also contributed to the blow-out. The upside of this dramatic increase in production costs is that many growers are now forced to re-evaluate the efficiency and cost effectiveness of their phosphate fertilising. In doing so, many have realised that unstable, acid-treated phosphate, where up to 70% may be lost to lock-ups, was dubious value at $650 (AU) per tonne but it is an extremely poor investment at double that price. Let’s look more closely at the phosphate investment in crop production – let’s look at how this mineral works in the soil and in the plant, how we can increase the efficiency of phosphate fertilisers and how we can reduce costs without loss of production. (more…)