Irish farmers facing ‘significant pressure’ on fertiliser availability
There is "significant pressure on fertiliser availablility" and while supplies are tight, orders are currently still being taken according to some of the country's major co-ops today. (Wednesday, March 11)
However the International Fertiliser Association has also issued a stark warning that the global fertiliser supply has "tightened and prices are rising" because of the ongoing conflict in the Middle East.
According to the association the Middle East region accounts for "almost 30% of global export supply of major nitrogen, phosphate, and potash fertilisers".
It said that within a week of the conflict in Iran unfolding average fertiliser prices have surged with global urea prices increasing on average by 37%.
The association has also highlighted in the last 24 hours that major Middle Eastern fertiliser suppliers have in some instances stopped operations and canceled supply contracts because of the unfolding conflict in the region.
A significant percentage of the world’s fertiliser trade depends on shipments through the Strait of Hormuz, a narrow shipping route, which Iranian authorities have said is closed and where cargo ships have come under fire.
The International Fertiliser Association also believes rising energy costs are set to "intensify" fertiliser price volatility because of the strong link between natural gas, oil markets, and nitrogen fertiliser production.
It said "governments, the private sector, and civil society must act in concert to mitigate the disruption in fertiliser supply chains and guarantee that farmers have timely access to adequate quantities at fair prices".
Fertiliser
Agriland contacted a number of agri-merchants located across the country to get an indication of fertiliser prices today.
It is important to note that Agriland contacted a sample number of merchants, but in some parts of the country other sellers may charge less and others may be charging more than the avearge price ranges below:
Agriland had also contacted a range of agri-merchants last month on February 24, to find out about average prices there were being quote for fertiliser.
A comparison of the prices quoted in February compared to March illustrates the sharp jump in some fertiliser prices on the island in a relatively short period of time.
According to some of the country's major co-ops they have seen an increase in demand for fertiliser.
A spokesperson for Lakeland Dairies: “There is currently significant pressure on fertiliser availability and pricing due to the ongoing conflict and the associated geopolitical factors.
"We will continue to closely monitor the situation and keep customers informed.”
Meanwhile a spokesperson for Dairygold co-op told Agriland that Dairygold "continues to sell fertiliser and take orders from customers to meet spring requirements".
The spokesperson added: "In recent weeks, there has been a significant increase in demand, driven both by market uncertainty linked to the ongoing conflict in the Middle East and normal seasonal spring requirements on farms.
"At present supplies of CAN and compound fertilisers remain adequate and are available across our branch network to meet regular customer demands for spring.
"Supplies of urea remain tight due to ongoing disruption in the Middle East region. Dairygold has urea-based products available and is currently continuing to sell. It is a busy time out on farm, with tillage growers also about to begin planting when the weather improves".
The co-op said that it will continue to monitor market developments closely over the coming weeks.
Separately Tirlán said it has "recorded very strong fertiliser sales since December".
A spokesperson for the co-op said: "Year‑to‑date volumes are significantly ahead of the same period last year, in part due to the availability of a €20‑per‑tonne support payment.
"This scheme closed on February 13 when the full 30,000 tonnes allocated were purchased.
"Recent developments in the Middle East have caused significant disruption across global fertilizer supply chains. Countries such as Iran are major producers and exporters of urea, and the sharp rise in natural gas prices - a key input in urea production - has added further pressure."
The Tirlán spokesperson also highlighted that "urea supplies are currently extremely tight".
"We will continue to fulfil all existing orders, and we are awaiting further updates from our suppliers regarding the pricing and availability of new urea stocks.
"All other fertiliser products remain fully available," the spokesperson added.
Additional reporting by Breifne O’Brien
