Fertiliser suppliers have denied accusations they are profiteering after hiking prices by 13% in a single month.

Retail prices for ammonium nitrate have soared from about £220/t in September to £250/t for October, while urea – said to be in very short supply – has been priced at nearer £285/t delivered.

The hike has prompted suggestions on internet forums that suppliers are deliberately taking advantage of a buoyant grain market to charge farmers more for fertiliser. Recent weeks have seen feed wheat climb beyond £140/tonne.

But fertiliser suppliers rejected the claim. Instead, both GrowHow and Yara blamed the increase on tighter global supplies and unusually high demand from farmers keen to secure stocks before prices rise further.

GrowHow marketing manager Ken Bowler said: “Demand is still very brisk and supplies quite tight – stock levels were 1m tonnes down on the year before at the start of the season and demand has been rising on the back of grain pricing.”

The situation has prompted a call for clarity from the NFU. It wants suppliers to introduce more sophisticated risk management strategies to help farmers minimise their exposure to an increasingly volatile marketplace.

NFU president Peter Kendall said the union was working with other European farming representatives to lobby manufacturers in a bid to keep a lid on prices. “This pressure on farmers is not just restricted to the UK – it is a global issue.”

The message from suppliers was that fertiliser price rises stemmed from an anticipated increase in demand following the recovery in wheat prices. But this had not yet been matched by an increase in fertiliser supply.

Fertiliser manufacturers needed to be held to account and suppliers challenged to demonstrate that price increases were credible, fair and truly reflective of a free market, Mr Kendall added.

Calum Findlay, a fertiliser trader with Gleadell Agriculture, described the price increases announced by GrowHow and Yara for ammonium nitrate and urea as staggering.

“Although not totally surprising considering the current firmness of international nitrogen prices, this still comes as shocking news for those waiting or not able to buy.”

Meanwhile, phosphate prices remain under pressure as producers are fully committed through until September and now appear happy to sit and see how the market develops.

Potash prices are static, which is typical for the time of year, said Mr Findlay. Despite producers’ wishes to move prices higher, cheaper Russian imports to the UK would keep a lid on the market for the time being.

From our forums

“Suppliers know their gross margins and rates of return and can take their prices up to the limit which the grower can pay.”

AllyR

“Spare a thought for livestock farmers who have no grain to sell but still have to buy fertiliser for grass production – and have to buy in grain for feed.”

Davysboy

“There are plenty of mechanisms for agreeing prices. If your sole way is hoping it’s a good price on the day, then more fool you.”

TeslaCoils