Farmers are being urged to hold their nerve when it comes to fertiliser orders and to work closely with a trusted supplier with strong market knowledge and a proven track record in order to secure future supply of their nutrient needs at the best price. This is the message that Law Fertilisers, the independent fertiliser company supplying farmers in East Anglia, is sending to farmers with regard to fertiliser pricing and supply this spring.
Mark Law, Managing Director of Law Fertilisers says "There has been a lot of market volatility with massive price inflation in the last year, but this has lessened and farmers should be in a strong bargaining position not just on price but more importantly on quality and supply of their spring fertiliser requirements. Some of the larger fertiliser companies are uncomfortable coming out with market predictions but they owe it to their customers to provide this information. Farmers need to be working with suppliers that they trust to provide good information based on sound market intelligence and also to deliver top quality products tailored to the individual farms requirements."
"For example, the recent free fall in urea pricing should not have come as a surprise. There are a number of market factors that have come together to cause this price change. The first market factor is the reduction in gas prices which as raw material will impact on the end product pricing. Secondly there has been an increase in production capacity worldwide, with large cash investment being made in key countries such as India, China, Egypt and the Middle East. Then there is the impact of the credit crunch and the worldwide slump in agricultural commodities. It is straight forward supply and demand economics - an increase in capacity combined with the decrease in global demand leading to a price reduction in urea. Therefore comments in the marketplace to buy ammonium nitrate at £350-400/tonne to secure supply and protect against future increases could be regarded by some as misleading and may reflect the level of dominance of a small number of large players in the UK manufacture of ammonium nitrate," explains Mark.
Mark goes on to point out that it is not just urea that is coming down in price. "Compared to last July/August purchase, phosphate has reduced in price for a ship load by around one-third. Some competitors have bought at the higher price and so will be sticking with this price for the spring."
Mark Law says that farmers should expect a price reduction of between 25-30% for their spring requirements, with a further reduction later in the year. "We urge farmers to consider their position with their nutrient suppliers and make sure that they only use those that they know they can trust to give them the best deal in terms of price and quality. "
For further comment and information please contact Mark Law, Managing Director, Law Fertilisers Ltd on 01354 740740 or on 07710 324463 (mobile) or via e-mail mlaw@lawfertilisers.co.uk
Law Fertilisers manufacture a range of granular blends, using the highest quality raw materials and tailored to individual crops needs. Their integrated service is based on soil and plant sampling, sound scientific research and many years experience. Products are supplied directly onto farm, in bags or bulk and can be delivered and spread using in-house spreading service at a considerable cost saving.
Law Fertilisers aims to provide an independent, professional and targeted approach to fertiliser use in all major crops on the farm, including potatoes, cereals, oilseed rape, sugar beet, vegetables and fruit.
They also have a unique range of fertilisers and inputs for organic crops. These products offer efficiency and consistency of performance and comply with the strictest organic certification codes. Each product is natural and safe to the operator, the environment and the end produce and has been manufactured in a safe and sustainable way.
