Incitec Pivot has started the fiscal year strongly with the explosives and fertiliser maker’s sales volumes and prices above those of a year earlier.

In fiscal 2012 the company was expecting a continued recovery in fertiliser demand after the drought, although global fertiliser prices were likely to be volatile.

Chief executive James Fazzino told the company’s annual general meeting that he was seeing continued earnings momentum, and Incitec Pivot remained on budget.

“We don’t budget to stand still,” he said on Tuesday.

“Pleasingly, we’ve seen both volumes and prices above those in the previous corresponding period.

Continued growth in the Asia Pacific resources industry would increase demand for the explosives sold by the company’s Dyno Nobel division, Mr Fazzino said.

Another priority the North American business, which was still the largest explosives market in the world.

Continued demand from China for raw materials to support the urbanisation process would assist with selling explosives there.

Mr Fazzino said the company had a positive outlook for global agriculture and the effect on prices and its fertiliser business.

“On the supply side, the world is simply not growing enough food,” he told shareholders.

“In 2011, grain consumption is projected to exceed production. This is the eighth time this has occurred in the last 12 years.”

The company would aim to fix bottlenecks and pursue minor expansion opportunities in existing plants, including Moranbah and Phosphate Hill.

At Moranbah, the first milestone was to get the $935 million ammonium nitrate plant commissioned and then ramp up production to 330,000 tonnes a year.

The company has forecast that the Moranbah plant would transform increase profit by 20 per cent.

Incitec Pivot shares were up seight cents, at $3.12 on Tuesday.