What can be expected in the fertiliser market?

Mutragya What to expect in the fertiliser market? Huminexpert fertilizer

Many industries are facing problems due to the significant increase in the price of energy, especially gas. Many fertiliser companies have also been unable to adapt to the volatility of gas prices. Many producers have stopped production because of the sudden increase in energy prices, which have risen several times over the last few months, and the price of fertiliser, which is already sky-high compared to last year, could not cope with the sudden increase in costs! Natural gas, which is used as a feedstock for nitrogen fertilisers, among other things, generally accounts for around 80% of production costs. European gas futures prices are currently about ten times (!) higher than a year ago.

A Belgian farmer backed up his claims with concrete figures:

"Fertilisers that we were paying between €150 and €200 per tonne a year ago are now at €800. It's a terrible cost. And on top of that there is a shortage! So, to add to the much higher costs, there is also a shortage of supply," said Belgian farmer Laurent Gomand.

So the biggest problem for farms at the moment is the explosion in fertiliser prices in just a few months. As natural gas has now become a major player on the world political stage and seems to be the most powerful strategic tool in Russia's hands, unfortunately, no significant change is expected in the short to medium term. Europe's unilateral dependence on Russian gas cannot be changed in the short term, it will take years. New contracts, new pipelines through safe areas...

However, Russia is also a key player in the fertiliser market. Last year it was the leading exporter of nitrogen fertilisers and the second largest supplier of potassium and phosphate fertilisers. Sanctions will also reduce the availability of these products, meaning that the impact of the war could further reduce an already shrinking supply.

In other words, in addition to the price increase, it is likely to become increasingly difficult to obtain fertilisers due to the closure of factories for longer, shorter periods and the loss of Russia as the biggest world market player. Yara International, the world's second largest ammonia producer, announced on 9 March that it would temporarily limit production at its plants in Ferrara, Italy, and Le Havre, France. Another European fertiliser producer, Borealis, is also reducing its ammonia production capacity due to the current high prices, but is already considering shutting down production for "economic reasons".

Price increases and shortages in the fertiliser market

In the short and medium term, two trends seem to be certain in today's fertiliser market:

  • ever increasing prices and
  • steadily decreasing supply, i.e. increasing shortages.


Mutragya arak What to expect in the fertiliser market? Huminexpert fertilizer

The average fertiliser prices over the last period in the graph above show the incredible magnitude of the price change, which will only be exacerbated by the pressure of deficit management.

There is one logical conclusion to be drawn from the above. It is advisable to look for new production technologies that can rationalise or minimise fertiliser use while maintaining equally good or even better yields.

There are several ways to do this according to the article entitled "Soil improvement at its best: how keen farmers turbo-charge their plants", where they show how to achieve excellent soil quality with little fertiliser, for example by using organic humic acids.

If you feel you need to take action in this time of need and would like to know more about the benefits of humic substances and humic acids, contact us:

Huminexpert - reviving the original power of the earth„.

( source: agricultural sector, euronews , bloomberg)

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1 comment

  1. 2022.03.29. at 17:58
    Agnes Totov

    If this continues, fertilizer substitutes will indeed be needed soon... If sustainability is taken into account, the proposed use of humic acids does not seem to be a bad solution either.

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