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.
New-season nitrogen (SP5) 34.5%
Anticipated spring price nitrogen
Imported urea (if available)
Imported AN (new season)
Blended 20.10.10 and 25.0.16
|Liquid nitrogen, 37kg/100l or 29.6% N/t|
No market yet
No market yet
October, pay cash
January, pay cash
April, pay cash (forecast)
After-cut NK cash
TSP (47% P2O5)
Muriate of Potash (60% K2O)
IRELAND CAN 24.6.12 0.16.36 Complex compounds
Republic of Ireland*
*Note in the Republic of Ireland nutrients are expressed as elements not oxides. Analyses will not be directly comparable with those used in the UK. *Prices in the Republic are IR
*Note in the Republic of Ireland nutrients are expressed as elements not oxides. Analyses will not be directly comparable with those used in the UK.
*Prices in the Republic are IR
Note All illustrated prices are based on 20-tonne loads for immediate payment. Prices for smaller loads and those with credit terms will vary considerably.
Source: Bridgewater Partnership