FERTILISER giant Incitec Pivot has rejected claims farmers have been denied the benefit of falling world fertiliser prices.

Incitec Pivot managing director and chief executive Julian Segal said suppliers had been left with high stocks bought at previously high prices, which meant there would be a lag before lower global prices were passed on.

"When the price is rising, there is no difficulty moving stock, as customers hasten to secure product at a known cost," he said.

"This pressure works in reverse when prices are dropping and is accentuated when inventories are unusually high, as they are today."

The falling dollar had also exaggerated the difference between local and world prices, Mr Segal said.

"I cannot predict when Australian prices will again come into alignment with global movements," he said.

"But I do know that our highly competitive market ensures this will occur and that over time the normal cycle will be restored."

The comments come after the National Farmers' Federation said in The Weekly Times last week that farmers were "outraged and angry" that local fertiliser prices were still at record highs while world prices were plummeting.

The NFF presented figures on prices, relating mainly to urea fertiliser, to a recent Senate inquiry.

A fertiliser distributor in central Victoria, who preferred not to be named, said suppliers had been caught with excess high-priced stocks.

"Companies and suppliers stocked up when rumours were around that fertiliser could go as high as $2000 a tonne," he said.

"Instead, prices have collapsed but we still have to sell those stocks without losing money."

Meanwhile, Incitec Pivot last week revealed earnings before interest and tax of $969.1 million for the past financial year, up 210 per cent on the previous year.

It also delivered a 199 per cent increase in fiscal net profit for the year to a record $614.3 million, underpinned by higher fertiliser prices and sales.