Hydro and Terra name prices

By Roger Chesher

THE pattern of the compound fertiliser market has now been set as Hydro and Terra follow Kemira in publishing their forward price lists.

With similar complex compound products and faced with broadly the same raw material costs, it comes as no surprise to find Hydro prices at parity with those of Kemira.

Terra, however, is now producing a blended compound range and is reported to have entered the market 2/tonne below Kemira and Hydro.

In theory this means we could be faced with a three-tier market: Complex compounds at the top of the price range as usual, blenders some 5 to 7 below, and Terra in between.

Complex manufacturers would argue that having all nutrients bound in each granule justifies the price differential, which is of course nothing new.

Blenders will argue that in practice their products represent good value for money and they too have a loyal following.

Terra, equally, is keen to stress the quality of its new range and the “blue bag” has always attracted a premium in the marketplace.

But Terra is essentially a nitrogen company and its compound range is smaller than those of the other big two.

Perhaps we can assume Terra will serve its traditional customers, leaving the remaining market with business as usual.

Meanwhile, the marketplace is now quiet following a run of nitrogen business.

We have to wait and see if the grassland farmer and the more diverse network of grass-oriented merchants follow their arable counterparts by taking compounds in store now that the new price structure is revealed.

IRELAND