However, some of those gains from the lower prices have been offset by the Australian dollar’s rapid fall against the US dollar.

Summit Fertilizers marketing and sales executive manager Murray Brown said the market price of urea had dropped more than 62pc since August, while other fertiliser prices climbed during the same period.

Mr Brown said the cost of urea had fallen considerably over the past three months, while phosphate and potash had become more expensive for Australian farmers to buy.

He said the drop in urea was being cancelled out by the other products climbing at a similar rate and farmers generally didn’t use urea on its own and still needed to use all three types.

Ravensdown marketing and communications manager Ben Williams said the global credit crisis and the impact it was having on local fertiliser prices made it too difficult to “pick a target”.

“We’re unfortunately not in a position to comment on fertiliser prices or any anticipated future market shifts or trends,” he said.

“We could give you our prices one day but that would change by the time your paper was printed.”

Landmark WA agronomy and fertiliser manager Eddy Pol said the price of nitrogen had “come off” locally because no one was buying it internationally.

Mr Pol said there was limited fertiliser demand due to resistance to high prices and the lack of available credit.