“Buy a third of nitrogen fertilizer now”

Nitrogen fertilizer prices are high for the time of year. For trade and farmers, the question is how to deal with this. When is the best time to buy? Maren Franke, Sales Manager Benelux at Yara advises: "Spread the purchase and buy a third part now."

How do you characterize the price development of nitrogen fertilizers during this spring?
"Due to the cold spring, the application of fertilizer in grass and grain has been delayed. The result is that demand for second or third applications is starting late. But we expect this in the very short term. It is also noticeable that grain prices are high due to an increasing demand, which makes it interesting to grow more hectares of grain.This is an issue at European level.Since grain is also seen as a reference point for the price of fertilizer, increasing demand has an upward effect on the price.

We are also seeing developments on the production side of nitrogen fertilizer. Prices for raw materials are high and the regular price corrections during the spring were not there this year. Waiting until the last minute to buy fertilizer resulted in higher prices; early buying and storage has been lucrative this year. Higher production costs do not only play a role in the fertilizer industry. A whole range of commodities is at a high price level. Think grain, crude oil and metals. The price of crude oil has tripled since April."

What is happening in the international fertilizer markets?
"The rising grain prices are leading to a higher intensity of the cultivation of grain crops in all countries. In countries such as Brazil and the US, for example, you see more maize cultivation. The international demand for fertilizers is increasing as a result. The main importer of urea, India, closed recently. year with record imports (11,5 million tons of urea), which means that China, which traditionally serves a large part of India's demand, is not very actively supplying domestic urea demand, which in turn has led to rising nitrogen prices in recent weeks."

How has the market in the Benelux developed?
"In the Benelux, prices are more stable, but the price development of nitrogen fertilizers is in line with international trends. We are now expected to be at a moderate level compared to expectations in the longer term. That moderate level means that the current price increases for nitrogen fertilizers in the Benelux are well below the price increases in the international markets.The main product for the Benelux market, KAS, rose 'only' by 45% year on year; the main prices for nitrogen fertilizers for the European market rose in the same period by 86%."

Yara already offers fertilizer for storage for the next season. Is it advisable for farmers to buy fertilizer for next year?
"Nitrogen fertilizers are always necessary. It is not worth considering applying nitrogen fertilizers for a year because of a higher price. Therefore, it pays to buy smartly. As just said, nitrogen fertilizers are currently significantly undervalued in the Benelux compared to the international markets. It is wise to anticipate this."

What do you specifically advise farmers?
"Due to the aforementioned situation, we advise farmers to secure part of their fertilizer needs today for next spring. As in previous years, we recommend a risk distribution in the form of spread purchases at 3 different times. Now, in the autumn and in the It's similar to what many farmers do when selling grain and/or potatoes on the free market."

Early purchases also mean storage. How do you see that?
"At such an early stage, it is of course important to guarantee the optimum quality of the fertilizers. Big Bags are particularly suitable for storage on the farm, because this way the fertilizer quality from the production is optimally preserved. Contact with the outside air and therefore moisture is avoided. Big Bags can be stored properly and safely, both indoors and outdoors."

Farmers who are interested in purchasing nitrogen fertilizers for storage, but also for direct application can make this known to Yara. How does that work?
"Go to ours quote request page† There, the agricultural entrepreneur can request a quote and choose from 4 different nitrogen products from the YaraBela product family (KAS products):

• YaraBela NITROMAG (GREENHOUSE)
• YaraBela SULFAN (KAS+sulphur)
• YaraBela WEIDE-SULFAN (Greenhouse+sulphur+selenium)
• YaraBela NUTRI BOOSTER (new product) (greenhouse+selenium)

The applicant can indicate a preferred supplier and Yara ensures that the chosen supplier takes care of the application."