Cancelled boats and supply fears have hit the European fertiliser market this week, following Russia’s invasion of Ukraine, according to importers.

The Irish Farmers Journal understands that a number of boats carrying fertiliser to Ireland have been cancelled in recent days while Grassland Agro’s managing director Liam Woulfe said the company has “a number of boats under stress in terms of timing”.

Merchants confirmed that some suppliers were in touch this week to put them on notice that they may not receive contracted product on time, or possibly at all, in a force majeure scenario.

Several importers described how European fertiliser manufacturers have not only stopped offering quotes for fertiliser this week, but have also paused production

Gouldings managing director Liam Dunphy told the Irish Farmers Journal that the company “is not in the position to do any new fertiliser contracts with merchants” as of Wednesday.

He said the company will “have the product to fulfil current contracts” and that they “are working on April” but warned that this is “going to be difficult”.

Several importers described how European fertiliser manufacturers have not only stopped offering quotes for fertiliser this week, but have also paused production.

Liam Woulfe said supply issues have arisen as “nothing more is going to come from Russia” which provided 22% of the fertiliser used in Ireland over the last four to five years.

He said that “product bought and product available” are “two very different things” and that while he is “hopeful” things may improve, he said “farmers may have to think about alternative product and blends” due to shortages from April.

A Glanbia Ireland spokesperson said that due to “global issues, urea is currently in tight supply” across its stores.

The fears from fertiliser have not yet reached some merchants, many of which saw an increase in farmer buying activity due to fine weather at the beginning of the week and “normal interest” for the 1 March.

Merchants say that farmers who want protected urea will pay an extra €50/t to €55/t, which brings the total cost up to the €1,000/t mark

While noting that many farmers have “left it to the eleventh hour” Robbie Meagher of Howard Farms in Cork said it has enough supply for now but “no one knows” what it will be like from April.

Tullamore Agri Suppliers, Co Offaly, said that while farmers are “making sure their order is on the list”, there is “no major panic” from many to buy at the moment.

With supply challenges building, fertiliser prices remain very high, with prices quoted for standard urea as high as €950/t.

Merchants say that farmers who want protected urea will pay an extra €50/t to €55/t, which brings the total cost up to the €1,000/t mark.

However, farmers in buying groups are said to have secured urea at a better price, paying less than €900/t this week.

Cut sward prices are averaging €835/t, while nitrogen is costing between €700/t and €720/t across the country, with nitrogen plus sulphur an additional €15/t.

Prices quoted for 18-6-12 and 10-10-20 are working out at an average of €760/t and €780/t respectively.

Read more

Europe must end its Russian dependence - Yara boss