The company also confirmed yesterday it would start doing business in eastern Australia, after more than 1000 sugar cane growers committed to buying fertiliser from the co-operative.
Ravensdown's manufacturing manager, Mike Whitty, said most of the fertiliser used by cane growers was high-analysis product such as urea, DAP and potash, which would be imported directly from overseas suppliers into ports at Townsville, Mackay and Brisbane.
From its Queensland toehold, Ravensdown would then look to develop market share in arable, horticulture and the small dairy industry in Queensland and northern New South Wales, Mr Whitty said.
Eventually, it hoped to expand its share into pastoral regions in southern states, which would mean supplying superphosphate from its Ravensbourne fertiliser works in Dunedin.
Ravensdown already supplied superphosphate to West Australia from Dunedin, but increased demand could eventually see it ship close to 200,000 tonnes a year from Ravensbourne to Australia.
Mr Whitty said cementing its presence in Queensland was the company's main priority.
Chief executive Rodney Green said in a statement that a limited range of fertiliser would be supplied to Queensland cane growers on a prepaid basis until growers became fully paid-up co-operative shareholders in two years.
Mr Green said the growers invited Ravensdown to enter the market out of frustration with the service they received from corporate suppliers and there have been reports it could mean annual sales of 50,000 tonnes.
The company has announced a $4 a tonne reduction in the price of superphosphate, effective from yesterday.
This took the price to $392 a tonne, less than half its peak price last year. DAP has fallen $168 a tonne to $827 and urea by $45 to $650 a tonne.
These products represented 90% of company sales.
The company's sales manager, Ross Aimer, said the price of potash and potassium sulphate was going against the trend and would rise due to the small number of international suppliers who were keeping prices up.
Mr Aimer could not say categorically what would happen to prices in the future, but he envisaged prices stabilising at present levels.
