Understanding the Real cost of Glyphosate

In the ever-changing landscape of agricultural products, pricing can be a complex subject, influenced by factors far beyond the control of individual businesses. Recently, we had an inquiry from a customer questioning the current price of Rainbow & Brown Glyphosate 360, leading to a deeper look into how the price has evolved over time and the forces at play behind these changes.

Let's start by examining the historical pricing of our Rainbow & Brown Glyphosate 360 in 5L packs at a per litre cost excluding GST:

• Dec 2018 – Feb 2021: $8.60 per litre (well after COVID hit NZ in Feb 2020)

• April 2021 – June 2021: $9.60 per litre (exchange rate of 0.72)

• August 2021: $14.40 per litre (sharp increase due to shipping costs and raw material price hikes)

• Nov 2021 – Dec 2022: $15.80 per litre

• Jan 2023 – May 2023: $14.80 per litre (slight decrease)

• June 2023 – August 2023: $13.32 per litre (further drop)

• Sept 2023 – April 2024: $10.00 per litre (continued price drop)

• May 2024 – Sept 2024: $9.60 per litre (return to April 2021 levels)

Factors Influencing Price Fluctuations: The price changes reflect a variety of global and local factors:

1. Exchange Rates: The exchange rate has played a significant role, with the rate dropping from 0.72 in 2021 to around 0.60 in 2024. This 26% change in the exchange rate means that despite the price per litre appearing similar to 2021, the real cost when adjusted for exchange rates is actually around 20% lower than pre-COVID levels.

2. Shipping Costs: The cost of shipping has remained elevated post-COVID, with rates increasing 8-10 times during the pandemic. Even now, these costs have not returned to pre-pandemic levels, impacting the final price.

3. Raw Material Costs: The price of raw materials surged in 2021, contributing to the significant price increase seen in August of that year.

4. Local Inflation: Like all businesses, we’ve faced rising costs in local freight, rates, insurance, and other operational expenses. These factors are part of the broader economic environment that affects all sectors.

The current price of $9.60 per litre (as at 1 December 2024) may seem steep when compared to pre-COVID prices, but in the context of global economics, exchange rates, and shipping costs, it’s actually a reflection of the significant efforts we’ve made to keep prices as low as possible. In fact, in USD terms, Glyphosate prices are the lowest they have been in 10 years.

At Rainbow & Brown, we strive to provide our customers with the best possible prices while maintaining the quality and availability of our products, including Rainbow & Brown Glyphosate 360, Rainbow & Brown Glyphosate 540 and Granny Herbicide. The global market is complex, and while we can't control exchange rates or shipping costs, we are committed to transparency and doing our best to offer value for money.