18 March 2008 23:08 [Source: ICIS news]
HOUSTON (ICIS news)--Argentine fertilizer producer Profertil has agreed to set a price ceiling for urea, according to Agrium on Tuesday, which owns 50% of the company.
Agrium said Profertil and the Argentine government had reached an agreement on short-term support measures for Argentine growers to provide improved input cost predictability.
These measures include establishing a ceiling for the urea price to growers at the current selling price of $410/tonne (€262/tonne) for the upcoming growing season, Agrium said.
The Profertil facility experienced significant downtime due to reduced gas availability during the winter of 2007. The Argentine Government has indicated that ensuring an adequate supply of urea to farmers is a priority.
This priority, along with steps being taken by Profertil, is expected to minimise the risk of downtime due to gas supply interruptions through the 2008 winter, Agrium said.
The news comes amid a farm workers strike over a new export tax on certain agricultural products and a programme aimed at raising the harvest.
($1 = €0.64)
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