Fertiliser business stagnates

THIS week sees the annual dinner and the 125th anniversary of the Fertiliser Manufacturers Association (FMA).

William Tooley, joint managing director of J H Bunn Ltd., succeeds Tony Robinson of Hydro as President.

It will also be the first opportunity for David Heather, who was appointed director-general on 1 October, to address all his members in his new capacity.

More to the point, the 38 member organisations will use this opportunity to invite a wide cross-section of their merchant and distributor customers to attend the occasion.

They must surely hope that the ensuing melée sufficiently raises the profile of fertilisers to stimulate some activity in this ailing half-billion-pound market.

We should expect prices for spring NPKs to be published at the end of the month and, as application time creeps nearer, purchasing and movement must start soon.

But very little has changed this week.

Farmers are only too well aware of the over capacity of the industry and of the fierce competition between an excess of merchants vying for the same business which results in stable, rock-bottom prices and product traded for little or no margin.

When energy prices work through, and when expected rationalisation occurs both in the fertiliser industry itself and the merchant trade, then prices will surely rise.

For many, however, there is still no incentive to purchase other than when needed, but the shrewd may wish to top up depleted farm stocks at bargain prices.

Rationalisation is further illustrated this week by Kemiras final withdrawal from retail business.

The remaining part of the formerly significant AgteK business in South Wales has been transferred, along with three field staff, to Wynnstay and Clwyd Farmers plc.

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