Fertiliser dealer undercuts co-ops
A fertiliser dealer described by a Ravensdown spokesman as an ‘‘opportunist’’ is selling products for an average of 12 per cent less than the leading co-operatives.
Hastings businessman Charles Dickie imports ready-made triple superphosphate as well as other products. Some are made in China, others are sourced from Egypt and Jordan.
He launched Dickie Direct in 2014 and now has more than 200 customers in the North Island. The business has just one fulltime staff member - Dickie himself - a part time storeman and accountant.
Soil scientist Dr Doug Edmeades said he believed what Dickie was providing was ‘‘the real Mccoy’’ at a price on average $90-$100 per tonne cheaper than the prices charged by Ravensdown and Ballance, although they offer a rebate each year.
Last year Ravensdown paid farmers a total rebate of $41 per tonne, the year before it was $50, but even with the rebate, Dickie’s prices are cheaper. Edmeades said the important issue was to maintain quality, and Dickie would need to have his fertiliser tested and provide certification. He had sent Edmeades analyses which were ‘‘true to type’’.
Ravensdown spokesman Bryan Inch said the co-op stopped testing for Dickie because he was doing one or two samples a year and would tell his clients his products were tested by them. ‘‘If importers are not testing the products, how can they assure people about what they are selling them. We don’t test the product any more, and so we ask if they have the same integrity around testing that the co-ops do.’’ If Dickie stood behind his products, he should apply for Fertmark certification.
Dickie said he dealt with long standing reputable suppliers and regularly tested and had up-to-date analysis of every product.
Inch said some small importers made up a minor percentage of the market. ‘‘Opportunistic players are not a threat.’’
Dickie said he did not want to upset the big co-ops but acknowledged he was a disrupter who was planning to grow his business. He did not plan to employ many more people because he was running a ‘‘lean, mean’’ model. ‘‘I’m not saying what the co-ops do is wrong and we are a better supplier - we just see there is a proportion of farmers who can get better prices through us.’’ Edmeades said the issue raised questions over the long term future of the co-op model, with their expensive manufacturing of superphosphate, warehousing, and outreach through advisers. Inch rejected the assertion, arguing ‘‘NZ Inc’’ depended on farmers being able to source products they could trust.