Despite an industry push for farmers to use protected urea, it looks likely early season usage won’t increase much in 2021.

A combination of price hikes and availability issues north and south look set to dampen usage of protected urea.

As urea and CAN prices continue to climb and with insecurity in the supply chain, the expected upward shift in protected urea usage is likely not to happen as availability is limited.

This is something that needs to be addressed if the national strategy to reduce emissions is to be realised.

As reported last week, uncertainty surrounds delivery of urea and prices are unclear for many buyers until product makes it on to the boat.

Standard urea supplies are under pressure and there is further delay with protected urea as dressing needs to take place. In some outlets, farmers may not have the option to select protected urea.

Strategy

Teagasc and the Department of Agriculture have placed a strong emphasis on protected urea use in reducing ammonia emissions.

It’s cited as one of the biggest contributors to reducing ammonia emissions on the Teagasc MACC curve, along with the use of low emissions slurry spreading equipment.

Earlier this year, many merchants and co-ops described increased interest in protected urea and many farmers purchased when prices were keen in early to mid-January.

Since then, protected urea prices have increased by €100/t in some places and it looks like this price will move further, with the urea price for March moving over €400/t to the merchant.

If these prices hold, protected urea will be en route to exceed €450/t when it lands in the farmyard, showing the high demand and low stocks in the market. It should be noted that some merchants are still cushioning prices with early bought stocks.

Previously, the price of urea hit €400/t in 2015.