Fertilizer prices have declined across the board since the turn of the year, with changes in the supply and demand balance and a fall in gas prices. Josh Joachim, Fertilizer procurement manager at farm buying group AF, states that Urea prices have led the way. These recently dropped from a peak of £710 to £450/ton.
"Ammonium Nitrate prices have followed suit – our April prices are up by £5 to £455/t, but the market is waiting for the new season CF Fertilizer prices, with farmers hoping they will begin with a three."
Although phosphate and potash production does not rely on gas to be produced, the two nutrients also saw a big increase in prices a year ago, but they have also moderated, Joachim said.
Joachim said that the high prices of the last 18 months have altered farmer behavior, with more farmers using a Fertilizer-use calculator that AF launched, plus testing soil and checking nitrogen content in grains. More growers have also switched to slow-release methylene urea.