Farmers blame China biofuels industry for 80 percent rise in fertilizer prices in New Zealand

In New Zealand, farmers have seen fertilizer prices rise by 80 percent since May, stuff.co.nz reports that famers are blaming biofuels. The source of the problem is China, the farmers point out, which have bought up fertilizers and bid up the price along the way. The efforts in China to dramatically expand cultivation of biofuel feedstocks – presumably to offset the impact of oil price rises on the Chinese economy – have led to such a sharp increase in the price of DAP (diammonium phosphate) that farmers have been forced to discontinue us of it. Superphosphate and urea have seen far less aggressive price hikes. Farmers are concerned that currency fluctuations which could relieve the impact of price increases would decrease export revenue from meat and wool.

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