Fertiliser prices now well below 2008 peak

Fertiliser prices now well below 2008 peak

Friday, June 12, 2009

GrowHow UK has announced a retail price for June delivery at £178/t for Nitram (34.5%N) ammonium nitrate, with £2/t monthly price increases to August 2009, with a new pricing structure that reflects big changes in the global fertiliser market.

 "The global fertiliser industry has shifted significantly since the price peaks of last year," says GrowHow UK Marketing Manager Ken Bowler at Cereals 2009. "Pricing has to take account of global supply and demand for product; energy prices - especially natural gas; and exchange rates. All are volatile factors that will influence UK prices.

GrowHow adds that it is UK dedicated to manufacturing in Britain from its sites at Billingham and Ince, having invested £16m at Billingham to increase ammonium nitrate production by 120,000t and to improve efficiency, reduce environmental impact and ensure consistency of product. 

 "Early indications are that the new structure is welcome with orders being placed. This is vital as the supply of 2m tonnes of nitrogen fertiliser in the season depends on a structured delivery pattern across the year to cope with the limitations of storage and logistics. The industry just could not cope with a 'just in time' approach," he says.

For farmers looking to take advantage of early season prices, GrowHow UK has linked with ING Finance to offer competitive loans to assist with farm cash flow positions.


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