Fuel and fertiliser prices edge higher

Fuel and fertiliser prices have increased over the past month, while the cost of glyphosate continues to slide, according to results from the latest Farmers Weekly/NFU Inputs Price Monitor.

The survey results for September point to just a marginal increase in the price of red diesel, up 0.4p/litre to average 43.3p/litre. This corresponds almost exactly to the 0.38p/litre increase in fuel duty which came into effect on 1 September.

But there has been a more significant hike in the price of white diesel, which has climbed 2.5p/litre to 94.5p/litre.

“The underlying price of red diesel is unchanged,” says NFU farm inputs adviser Hannah Moule. “But at the pumps, the fuel duty increase of 2p/litre for road fuel has bumped the average price of road diesel to more than £1.07/litre for the first time in almost a year.”

The IPM survey also reveals the regional variation in the cost of red diesel, with a 5000 litre delivery quoted at 40.8p/litre in East Anglia, but 43.3p/litre in Scotland.

Fertiliser prices were up by just over £2/tonne in September, to £181.5/tonne, reflecting the monthly price increments set by GrowHow. “These increments are set to go up, so expect a greater increase through October and November,” warns Miss Moule.

But glyphosate (Roundup) has dropped significantly again, averaging just £3.96/litre, compared with £4.31/litre in August, £4.84/litre in July and £5.19/litre in June.

These price falls are not as dramatic as in the USA, where manufacturer Monsanto recently announced a 50% cut in the price of Roundup for 2009/10 following a $200m investment in new capacity at its Louisiana plant.

Electricity prices have changed little in the past month, though there is an expectation the current surplus of electricity generation over demand – down due to recession – should filter through to lower prices this winter.

On the animal feed side the news for farmers is also encouraging, with cereal prices below last years levels, and soya also on a downward trend.

Inputs Price Monitor survey

Do you participate in the Inputs Price Monitor? We are keen to see as many farmers as possible complete the survey this month, in order to provide the whole industry with reliable results. Just click here and enter your recent purchases. It’s strictly confidential and will benefit your fellow farmers.

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