Fertiliser backlog looms as demand set to soar
Fertiliser backlog looms as demand set to soar
By Robert Harris
MASSIVE demand for nitrogen fertiliser and a shortage of lorries to deliver it means a severe backlog is looming next spring, warns the trade.
A big increase in winter cereal plantings coupled with the slow market means deliveries will be telescoped into a smaller spring window than usual, says Tony Simpson, chairman of trade body UKASTAs fertiliser committee.
Unfortunately, trucks may also be harder to come by, he warns. New European legislation coming into force on Jan 1 will require hauliers transporting fertiliser to employ a dangerous goods safety adviser.
Even if transport companies hire consultants to do the job, the bill is likely to come to at least £400, says Mr Simpson. "I know of one haulier with 13 lorries who is having to pay £1500 a year."
Furthermore, any driver transporting ammonium nitrate must have a vocational training certificate, the first of which are now coming up for renewal. But with haulage rates little changed from five years ago, some hauliers for whom fertiliser is not a core business are not bothering to renew them, says Mr Simpson.
With the market running 10-40% behind last year, Ray Kendal, logistics manager for merchant Cargill, also predicts problems. "There is going to be a big rush in the spring, putting pressure on vehicles. And the number is getting smaller all the time."
But he suspects it is opportunist firms – those hauling fertiliser as backloads, or taking it off boats – which will leave the sector.
"Anyone importing AN and needing a large number of vehicles is going to struggle."
Neil Taylor, of Hants-based importer Usborne Fertiliser, says orders are not coming in. "We are actively encouraging retail clients to cover at least their early requirements. But some other farmers are going to be let down."
Boats could also be hard to find. "All of Europe is quiet, and all of Europe is going to get busy at the same time. And as boats get older, fleets are getting smaller. But with the market as it is, we are not brave enough to book 5-10,000t of raw material ahead." *
SPRING BACKLOG?
• More winter cereals, more demand.
• Slow market to date.
• Fewer trucks available as legislation bites.
• Cover early trade soon, says trade.