11th June 2024
Winter has arrived with cooler evenings but hopefully a change to more consistent rain patterns leading into spring.
Autumn saw the fertiliser market kick into gear both on the drystock side where we have seen many farmers taking advantage of the savings achieved through the use of high analysis products such as TSP and on the dairy side where many farmers have returned to phosphate applications after a Spring where very little P was applied.
While the market has started to move we appreciate the decision to apply fertiliser has been a tough one for many. Both for sheep farmers as you battle reduced incomes from lambs with continuing increased costs across the board and for dairy farmers while the payout has continued its recovery, we understand that high costs are still having a major impact on your businesses.
At Dickie Direct we are here to help you navigate through these times whether it be through informed advice helping you make tactical decisions or by putting what we believe are the most cost-effective and efficient product options in front of you.
If you would like to explore product options for your farm this Spring then we recommend you contact your Dickie Direct Area Manager or either Charles or Tom Dickie.
Pricing Update
Inflation has been rampant in the last 2 years post Covid. Like many sectors agriculture has been hard hit whilst commodity prices have floundered. It is an apt saying that ‘costs go up via the elevator, and back down via the stairs’. The good news is there has been a significant shift downward in fertiliser pricing globally with these prices now working their way into the domestic market.
Key Product Price Updates – 11th June 2024
- Urea – $790/T
- SOA – $430/T
- Ammo 30 – $579/T
- DAP – $1090/T
- RPR – $485/T
- TSP – $875/T
- Sulphur 90S – $595/T
- MOP – $755/T
All prices are ex store Hawkes Bay and excluding GST.
Fertiliser Pricing Outlook
While reduced fertiliser prices have now made their way into the NZ market there are signs of some prices firming globally with added upward pressure coming from increases in shipping rates.
A big factor currently driving fertiliser pricing is China’s stance on the exporting of Urea and high analysis phosphates. For the past 8 months China have had export restrictions on these products as they aim to protect their domestic farmers and food chain. With these export restrictions being slower to lift than anticipated this has left the market tight and is putting upwards pressure on pricing.
At Dickie Direct we are working harder than ever on the procurement side of the business as we know true value for our clients starts with us buying nutrients at the most competitive prices.
People, Infrastructure & Systems
Dickie Direct has had a better than expected 23/24 year. Off the back of harder trading conditions in prior years due to shipping challenges and volatile pricing we have seen a large increase in both client numbers and tonnage throughput. This growth does not come without its challenges and as a result we have been putting a large emphasis on People, Infrastructure and Systems to ensure that we continue to improve and optimise our product and service offering.
People
Gus Redington – Gus joined Dickie Direct at the beginning of 2024. Gus has been a Dickie Direct client on his own dairy farm for a number of years. With managers now running the dairy farm in Pahiatua Gus and wife Maree have moved to a smaller beef fattening block in Fielding where Gus is applying his farming knowledge as the Dickie Direct Western North Island Area Manager. You can contact Gus on 027 430 8840 or via email at gus@dickiedirect.co.nz.
Sarj Singh– Sarj comes to Dickie Direct from Open Country Dairy in the Waikato. At OCD Sarj was a Milk Supply Manager focussed on new business and supplier relationships. A graduate of Massey University, he studied for a Bachelor of Ag with Commerce. Sarj is from a well-known Morrinsville farming family and played a bit of High-level rugby in his day. Sarj looks forward to getting out amongst our customers in the greater Waikato region and is available on 021 489 518 or at sarj@dickiedirect.co.nz.
Jacob Burns– Jacob joins Dickie Direct from Rorisons in Hawkes Bay where he has operated their store in Hastings since 2019. Jacob will have oversight of the new store on Orchard road and be an excellent addition to our growing operational team.
Warlock Stempa– Joins DD as a storeman and comes from a background in logistics and Orcharding.
Ellery Royal– Joins us from Bostocks and will also be a storeman at Railway Road.
Infrastructure
On the 1st of June we took ownership of the Rorisons Warehouse in Hastings. After pushing our existing warehouse beyond its loadout and storage capacity in the Autumn the opportunity to take over a second store was timely. This second store will allow us to run with larger inventories as we combat continuing disruptions to global shipping while doubling our bagging and bulk load out capacity and improving our bagged blend throughput . Each warehouse will specialise in different product blends throughout the year with our dispatcher keeping carriers informed of where to head for loading.
While the Dickie Direct model does not run regional warehouses we do have a growing number of spreaders and carriers using their own depots as drop points in order to dispatch blends from. This enables efficiencies for both the speaders/carriers and our customers where they may not have infrastructure on farm. Please contact your Dickie Direct Area Manager to discuss drop point options.
Systems
Dispatch
We have made the decision to take our freight and logistics management in house. If you don’t have a preferred carrier Dickie Direct can source the most efficient and cost-effective carrier to complete the transfer of fertiliser from our store to your farm. This will come with automated text messages both when carriers are booked and trucks are loaded, ensuring you are kept informed of your delivery every step of the way.
Brian Flavell is transitioning from leading outbound despatch to the logistics role. Brian is very well known to all our carriers and will continue to lead the outbound organisation of trucks from our Hastings sites.
You can contact Dickie Direct Dispatch on 0274300459.
Winter Soil Testing and Spring Fertiliser Planning
Soil testing is an important piece of the fertility puzzle. Dickie Directs ‘full-service’ model uses Hills Soil Testing Labs in Hamilton for all its soil and herbage testing. Winter is often the ideal time for annual or bi-annual soil testing. The ‘test, not guess’ mantra is never truer as the drive for pasture utilisation and value from home grown feed becomes ever more important.
Our Area Managers are geared up and capable to carry out your winter testing. Our Area Managers are also exposed to the buying side of the business giving them an understanding of market trends and movements allowing them to give more informed recommendations to their clients for the approaching Spring season. While we believe using the right product will generally give better returns than the same product at a better price, we do still place a large emphasis on price.
Make sure you stay up to date with the latest pricing, news and technical advice via our website at www.dickiedirect.co.nz.
Summary
This Spring marks our 10th birthday. We are proud of our achievements to date and to be a part of the New Zealand agricultural industry. We thank you for your continued support and look forward to celebrating this milestone with you in the Spring.
Our store and field teams look forward to working along side you in what will be a busy Winter and early Spring period for farming and Dickie Direct.
Thanks
Charles Dickie and the Dickie Direct team
