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What are your thoughts on the fertiliser price s for 2022

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  • Registered Users Posts: 6,689 ✭✭✭jaymla627


    The initial financial hit that intensive farms will be hit with will take some recovering from, looking at the 2020 cso data Irish farmers spent 500 million on fertilizer and 1.5 billion on purchased concentrates, looking at 2022 fertilizer spend will be over a billion to maybe 1.5 billion if lads cough up current prices and don't cut back usage and you could easily see meal price increases of North of 25% for 2022 that's another half a billion...

    So ballpark 1.25-1.75 billion in extra costs will be incurred on farms next year for just these two inputs, their is going to have to be north of 5 euro plus beef and milk in the 40's of a base price for farmers just to maintain income levels



  • Registered Users Posts: 3,310 ✭✭✭Gawddawggonnit


    There’s been 3 salesmen here these last couple of days. Each have said that fert will be available but at exorbitant price. Their reasoning is to change cropping plans, and not to lock oneself into a cropping regime that requires artificial fert.





    Someone on here said that they would plant rye but the seed is too expensive. For future reference anyone looking to source expensive seed please feel free to contact me and I’ll organize seed for them.



  • Registered Users Posts: 13,830 ✭✭✭✭Danzy


    I tracked him as far as I could but he threw my tail.


    Take me to your dealer I roared but to no avail.



  • Registered Users Posts: 4,632 ✭✭✭White Clover


    I know the lorry but I can't make out the pub!



  • Registered Users Posts: 6,689 ✭✭✭jaymla627


    Will milling quality wheat not be gold dust next autumn, meaning even at current prices if you can source n it was/would be worth sowing



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  • Registered Users Posts: 13,830 ✭✭✭✭Danzy




  • Registered Users Posts: 97 ✭✭Fanofconnacht


    Fertilizer will be more expensive next spring but it will not be 3 times this years price, if it is usage will drop massively.



  • Registered Users Posts: 6,994 ✭✭✭kevthegaff


    Lad got quoted 800 euro a ton for urea



  • Registered Users Posts: 18,579 ✭✭✭✭_Brian


    Is that for the spring or now ??

    if it’s for the spring it might just be that they don’t know and are hedging their bets with a high price.



  • Registered Users Posts: 6,689 ✭✭✭jaymla627


    It will be 3x our more compared to Jan 2021, it might drop back down next summer provided gas prices come back to reality but spring prices will be in the clouds



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  • Registered Users Posts: 2,215 ✭✭✭DBK1


    Yep, a smaller merchant up the road here has Urea in the yard, it was either €810 or €820 a ton he quoted.



  • Registered Users Posts: 97 ✭✭Fanofconnacht


    Just looked at Yarra 3Q results presentation and what jumped out was how much a European issue gas price is. European spot price up almost 7 fold from 3q 2020 but US price only doubled. One thing that is going to happen is that European imports of fertilizer will increase significanly because local production costs so much higher than other areas. This will keep a bit of a lid on prices in Europe.



  • Registered Users Posts: 97 ✭✭Fanofconnacht


    Also Yarra is shipping in Ammonia from outside Europe as cost is much lower. This will also keep its costs down.



  • Registered Users Posts: 6,689 ✭✭✭jaymla627


    If only it was that simple, key points

    1. China has suspended all fertilizer exports indefinitely they where responsible for 30% of world urea exports and phosphate also.

    2 Hurricane Ida done massive damage to Us fertilizer production plants this summer and massively impacted production capacity, America probably won't get enough nitrogen produced to cover domestic supplies for spring plantings and autumn crops top dressings

    3. India/brazil/Ethiopia are currently trying to buy millions of tons of nitrogen on world markets and its simply not their, Indian government has now announced a 3 billion aid package to try and secure supplies

    Egypt a major world exporters on fertilizer markets is currently getting 845 dollars ton ex port for Urea, probably equates to 750 euro landed at a Irish port, russian prices are similar in think but quality with fertilizer out of these regions is variable but its the only show in town for any reasonable export volumes, the question for Irish farmers are co-ops buying at these prices to guarantee supply here for spring our are they holding out, if the latter I don't think fertilizer will be readily available here at any money come Spring



  • Registered Users Posts: 13,830 ✭✭✭✭Danzy


    Ammonia prices are near double in all Global markets.

    Certainly the harshest impact is in Europe.


    Costs will be kept down as much as possible, agree there.


    Unless there is significant changes quickly even that will not keep prices below a 1000 a tonne for urea.


    Ammonia for next spring is already being priced at 1000 dollars in America, and they are the largest natural gas producer in the world.

    China is now placing restrictions on Urea exports, they make one third of the global supply.


    France have said they doubt their demand will be met and customers in India and Brazil are having orders cancelled.


    The unfortunate reality is that in the last fortnight nothing has changed for the better and some new globally significant problems have arisen.


    This will kick the living shi8 out of beef feedlots across the world and the same with global milk. As I've said before there are feed lots in America where hundreds of thousands of cattle are finished a year and none of them have enough grass to wipe a single boot. Same with many with big ban of Cows, thinking of one in the Dakotas where a Fermanagh man is milking 4500 cows on a thousand owned acres. Corn and alfalfa fed.

    His costs are going to be brutal. I hope he manages.


    We are one of the tiny few where grass is the staple.

    Post edited by Danzy on


  • Registered Users Posts: 4,844 ✭✭✭straight


    What if there's a bumper harvest in the southern hemisphere



  • Registered Users Posts: 13,830 ✭✭✭✭Danzy


    Most grains and maize/corn are grown north of the Equator. South of it big players like Brazil and Argentina are fertilizer dependent.


    Australia is about 3 % of global wheat but a seventh of traded grain.


    In milk under half of global milk comes from China, India, Pakistan and America.


    The 2 in the middle are already hitting supply problems with fertilizer. The first isn't going to export a drop and the yanks are facing a doubling, at least in fertilizer costs.


    Hopefully there will be a bumper crop in the Southern hemisphere.


    Things are still going to be very bullish for meat, grains and milk globally.



  • Registered Users Posts: 4,844 ✭✭✭straight


    Just wasted an hour of my life looking at a teagasc/signpost webinar. There was alot of messages coming in about availability of fertiliser. The advice is there is no issue. Just put together an attractive large order for the merchant and they will be very glad to fill it. Their signpost choir boy that they had on the call said he had no problems getting fertiliser either. He's stocked at 3.5 on the milking platform but spreading protected urea so all is good there.



  • Registered Users Posts: 6,994 ✭✭✭kevthegaff




  • Registered Users Posts: 1,419 ✭✭✭Wildsurfer


    Just to put a bit of perspective on the whole thing though, even if fertilizer doubles in price it looks like an increasing milk price will more than cover the extra costs on Dairy farms What would ye prefer, milk at 42c/L cent base and urea at €1000 per tonne or 25c/L and €300 per tonne??



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  • Registered Users Posts: 13,830 ✭✭✭✭Danzy


    Exactly.


    Most of the world's dairy farmers are down stream of Ireland, New Zealand etc. High cost producers compared to us


    Food prices could become a global political issues the next few years.


    The Arab Spring was on the back of a 200% surge in nitrogen in 2007 and 2008.


    That said the status of food production needs to be a decent payer again and States must face that they live in a world where talk of solidarity and cooperation doesn't really beat reality for long.



  • Registered Users Posts: 999 ✭✭✭greenfield21


    New Zealand High cost?? Also what do you mean by downstream.



  • Registered Users Posts: 11,223 ✭✭✭✭mahoney_j


    And we’re not low cost despite some of the crap Tegasc print ….free land free labour .no debt …….



  • Registered Users Posts: 13,830 ✭✭✭✭Danzy


    No,the Kiwis are in Same league as us. By downstream I meant most of the rest are not as cheap as Ireland.

    We aren't cheap, no doubt but compared to many where forage is brought in etc.



  • Registered Users Posts: 6,994 ✭✭✭kevthegaff


    You would imagine with the price of fert and meal, it will make us more competitive. Will land go up or down, I'd say up



  • Registered Users Posts: 3,310 ✭✭✭Gawddawggonnit


    Hard wheat only yields 4-5t/ha and it would want to hit €550/t to justify growing it. We wouldn’t be planting it until January so I’ve plenty time to decide.

    So far I’m going to swing away from crops that demand any artificial fert. My bet is that the yanks will swing from maize to soybeans and thus maize price inflation…I can always swing to sunflowers, haricots etc. depending on how the fert market goes so I’ve plenty options.



  • Registered Users Posts: 3,310 ✭✭✭Gawddawggonnit


    …cheap fertilizer.

    Fyp!


    Talk here about grass being the cheapest feed to produce should be well tested next year. I’m getting out of grass and it’s relatives (wheat, barley etc) for next year because of their need for large amounts of artificial fert…my objective is to buy no fert for next year!



  • Registered Users Posts: 6,689 ✭✭✭jaymla627


    Did they at least provide a link to a milk flex application form to pay for this fertilizer our should lads insist on their merchants financing it with the promise of a few cheques next summer



  • Registered Users Posts: 6,689 ✭✭✭jaymla627


    I'd wager that Rodney will weather next year in alot better shape then a lad with with a couple of hundred cows in Ireland stocked at 3.0 plus cows ha on the milking platform and a serious urea addiction problem, unlike here the US government subsidised their dairy sector to the tune of billions of dollars in direct aid the last 2 years and will do the same going forward, the EU want us all going organic and will happily see intensive farms go under once their euthopian organic farming vision is implemented, I'd wager when food inflation goes of the charts they will row back of course but how long will it take for them to admit they where wrong again like the renewable energy debacle



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  • Posts: 0 [Deleted User]


    I'd not be so sure. They've had a change in administration. Bidens feds are promoting things like 30 x 30, which is similar (but not the same) as the EU's Biodiversity for 2030 strategy, namely "protecting" 30% of their land by 2030. The Dems aren't farmer friendly. The more I see of it the more I see how people held their noses and voted Trump.



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