Glanbia is considering the rollout of a fertiliser contract scheme where farmers will be invited to sign up to purchase a percentage of the total fertiliser weight they purchased last spring at a set price for next spring, the Irish Farmers Journal understands.

Details of the proposed scheme are understood to have been discussed by branch managers in recent weeks, with targets to have “customers signed up” outlined by “head office” on Monday, according to a Glanbia source.

The move is thought to be a mechanism to ration supply in the event of shortages, as well as a means of cementing demand ahead of Glanbia’s purchase from suppliers.

It is understood it would mean farmers who sign up to the scheme would be insulated from further fertiliser price increases during spring 2022 but risk losing out if prices decrease during the period.

This is an ongoing process

A Glanbia Ireland spokesperson would neither confirm nor deny the scheme. “We are working with our farmers and fertiliser suppliers to secure volumes for the spring of 2022. This is an ongoing process.”

Liffey Mills will not be issuing contracts for fertiliser this year but will be putting the emphasis on looking after its own customers if supply is tight, a spokesperson said.

“We will only be selling urea to someone who bought off us last year as it may be limited, but everything else should be fine. There is no need for people to be panic buying, there probably will be enough and there needs to be a different rhetoric put on this I think.

“Next year won’t be a year for over-fertilising but we will have to manage it by looking at soil indices and getting away with as little fertiliser as possible until prices come back a bit.”

There is fertiliser there, we just need to manage it correctly

Depending on weather and if slurry is used appropriately, farmers should get away with spreading less fertiliser than usual, the spokesperson said.

“We don’t want a fodder crisis next autumn or winter. There is fertiliser there, we just need to manage it correctly.”

Meanwhile, at a recent Dairygold meeting, it is understood that CEO Jim Woulfe would not commit on fertiliser prices for next spring, but said that Dairygold was sorted on the supply front for the first quarter of 2022. After that, Dairygold is unsure.

The outgoing CEO said that normal credit arrangements would be in place for the first quarter of next year.