John Coughlan, IFA Inputs Project Team Chairman, has sent a stern warning to farmers telling them to shop around before purchasing fertilisers. He said this after it was announced that wholesale CAN prices have fallen by over €30 per tonne in recent weeks. He also added that these prices drops should be reflected in farm gate prices within the coming days.
Upon the price drop announcement John Coughlan said, “With the EU fertiliser season rapidly moving to a close, wholesale fertiliser prices – in particular nitrogen prices – have fallen significantly in recent weeks. These savings should be passed back directly to farmers.
He also warned farmers that “Unfortunately, many in the trade, including some of the importers, are attempting to maintain current prices at artificially high levels. Wholesale international bulk CAN prices (CIF) have fallen by over €30/t in recent weeks with keenest quotes under the €190/t price mark. Further price drops are mooted by industry observers. Prices for NPK compounds are also falling.
Mr. Coughlan then went on to update farmers of the latest prices on the fertiliser market, “Keenest quotes for top-lift CAN are around the €228/t price mark with prices expected to fall further. Pasture Sward / 27-2.5–5 and 18’s are trading around the €325 – €335/t price range with Cut Sward / 24–2.5-10 trading €7/t to €10/t over.
He said the reason farmers should be cautious before purchasing fertiliser is because the “Major European fertiliser manufacturers once again, by virtue of their size and the degree of market concentration, have been able to command significantly higher prices within the EU market.
John Coughlan concluded by stating, “The Commission needs to move to abolish anti-dumping duties and customs tariffs ahead of the new fertiliser marketing year which will commence shortly. This will stimulate much needed competition in an otherwise dysfunctional market.”