Re-evaluation of the basis for fertiliser recommendations in the Australian sugar industry: An economic perspective

The aim of this paper is to build on earlier writings to highlight ways in which economic analysis of fertiliser response can contribute to better nutrient recommendations. The paper adds an economic dimension to what has been a mostly technical discussion and proposes that recommendations incorporating more economic effects will help sugarcane growers meet contemporary needs for resource management. Researchers have reviewed the development of nutrient recommendations for sugarcane and provided some suggestions how these recommendations might be developed in the future. Issues that are important economically have not been covered by earlier reviewers and include choice of appropriate production relationships, particularly to account for interactions between nutrients and to deal with joint and complementary products. Objectives in addition to maximising growers' profits need to be considered and it is important to recognise the impact of environmental costs as well as producer benefits in the management of resources. Time effects need to be considered because of the long delay between application of nutrients and production and because some harmful environmental effects from nutrient application may take many years to develop. Uncertainty is always a feature of biological systems and the response of sugarcane to added nutrients is highly variable in most circumstances. This needs special consideration. Finally, the 'externalities' arising from nutrient application need to be assessed so that concerns of the wider community about possible harmful effects of nutrient applications are not ignorcd. Community perceptions of appropriate nutrient management strategies are changing and intensive agriculture is often perceived as damaging the environment and wasteful of resources. Economic and environmental issues need to be retlected in the future development of nutrient recommendations for sugarcane.