What is happening with fertilizer prices?
Adapted from articles from DTN Retail Fertilizer Trends by Russ Quinn (https://www.dtnpf.com/agriculture/web/ag/crops).
Fertilizer prices have steadily risen this past year, according to retail prices tracked by DTN. Monoammonium phosphate (MAP) is 74% higher than a year ago while diammonium phosphate (DAP) is 63% higher. Nitrogen fertilizers such as urea ammonium nitrate (UAN) has gone up 78% from a year ago while potash is 85% higher. The steep increase in fertilizer prices are driven by high natural gas prices in Europe, forcing some factories to reduce production or even shut down, global shortages of raw material due to the Covid pandemic that also caused global shortages of freight containers, high global demand and hurricane Ida that damaged factories in the USA.
The move by China to ban phosphate exports until at least June of next year puts even more pressure on global phosphate trade. China represents about 30% of world trade. Now China’s traditional buyers will be looking elsewhere. This ripple effect will not be positive for growers with pressure on urea, MAP and DAP.
As high as urea and DAP prices are right now, they have not hit the highs the fertilizer markets saw in 2008; with the difference being in 2008 it was driven by demand, while now the prices are driven by supply chain challenges.
Along with the fertilizer crunch, there are challenges in China with glyphosate production as well. With production at some facilities in the Gulf of Mexico also hit by the hurricane, there is growing concern about the availability of glyphosate into the next growing season.
The other real headache is supply-chain dynamics — the ability to get products to the South African market with increased freight costs due to global demand (freight costs per container increased by up to 50%), port bottlenecks, increased transport costs etc.
The supply situation for fertilizer and other chemicals is shaping up to make 2021/2022 an expensive year for inputs. Farmers have to become more resourceful and very flexible with their approach to growing. The fertilizer market will balance out around the world, but producers will have to adapt with tools such as precision farming, variable-application technology and reduced applications.
COMPO EXPERT’s enhanced efficiency fertilizers means you use less fertilizer with higher efficiencies. Helping a grower use less, but yielding more.
Reduce fertilizer inputs while maintaining yield with our range of high efficiency fertilizers
COMPO EXPERT has proven once again that using our enhanced efficiency fertilizers help farmers to reduce their fertilizer inputs while maintaining and even increasing yield. This reduction in fertilizer use results in savings on labour, fuel, maintenance and freight costs. The overall savings, are not only good for the environment (with less leaching and resulting pollution), but also increases yield and assist farmers to be more sustainable. Following is some results obtained using our Novatec® and Novatec® Solub range (stabilized Nitrogen; i.e. slow release), Duratec® with it double nitrogen technology and Basacote for precise, controlled release over up to 12 months.
With the souring prices of fertilizers, the demands from consumers to be more environmentally conscious and with less land and water to produce more, can you still afford not to use our enhanced efficiency fertilizers?
Novatec® Stabilised Nitrogen (slow release) granular fertilizers:
Novatec® technology keep nitrogen in the soil longer
Novatec® Stabilized Nitrogen water soluble fertilizers
Arguably, the best water soluble fertilizer in the world:
Duratec® – Stabilised Nitrogen (slow release) and Controlled Release granular fertilizers:
DuraTec® is a combination of a controlled-release fertilizer with nitrification inhibitor DMPP (3,4-dimethylpyrazolphosphate). It is SOP-based and excellent for application in vegtables, fruits, nursery, landscape and intensive horticultural cropping systems. The unique double N technology (nitrification inhibitor + coating) increases the nutrient efficacy, which leads to higher yields.
Basacote® Controlled Release Fertilizers
Basacote® is an advanced controlled release fertilizer technology for nurseries, special crops such as berries, fruit and nut trees and forestry.
It is designed to ensure a long-term and consistent nutrient supply for up to 16 months. The Climate Adapted Release (C-A-R) Technology is linked to ambient temperature and guarantees nutrient availability according to individual plant requirements
From the above results it is clear that applying fertilizers with a higher nutrient use efficiency, is not only good for the environment, it also help the producer increase plant growth (and yield) while using less fertilizer.
In these times of unprecedented increases in input costs, COMPO EXPERT is the logical choice in fertilizer to increase yield and profit while reducing input costs and without any detrimental effect on the environment. Call us today to carry your plant nutrient needs through the storms ahead.