Farmgate nitrogen prices have cooled slightly since Christmas, but still range between 2.5 to 3 times higher than where they were this time last year.

No matter where you are in the world, nitrogen prices have skyrocketed. They now stand at €2.08/kg in Northern Ireland and €2.06/kg in Scotland.

This week, our global nitrogen price survey, primarily for urea (46% N), shows a price range from €1.77/kg nitrogen in Midwest America to €2.06/kg nitrogen in Scotland.

Protected urea is about €50 to €65 per tonne more expensive than ordinary urea

Irish prices are among the most expensive, highlighting the increased shipping, trucking and packaging costs of getting nitrogen into Ireland.

All the prices quoted are for payment up front rather than credit terms.

Protected urea is about €50 to €65 per tonne more expensive than ordinary urea.

The impact on margins for Irish farmers of these increased prices will be huge given the usage pattern compared to many other countries, significantly reducing our global competitiveness for 2022.

Irish prices gathered this week range from €950/t for small 50kg bags down to €890/t for big bags delivered. In the North, prices are mainly on the upper side of £800/t (€960/t).

Australia

Australian prices seem to be softening and we understand most farmers have been able to forward price NPK products for seeding in May, three months away, at prices less than 50% higher than last year.

Australian price increases have been phenomenal with prices rising from €290/t this time last year to €854/t, equivalent to a 193% increase in price.

Argentina

The price of urea in Argentina was €332/t in March 2021. This then rose to €976/t in November 2021 and has fallen back to €860/t in recent weeks. Increased domestic crop production in recent years has led to an increased demand for imported fertiliser.

Argentina sources a lot of its imports from Egypt and Algeria

Argentina now imports 70% of its fertiliser requirements so like Ireland is very open to international market fluctuations.

Argentina sources a lot of its imports from Egypt and Algeria, so with shipping costs at a 10-year high, it has meant this has also driven imported product prices up.

There is also a real concern about reduced fertiliser application, lower crop yields and lower margins in 2022.

Germany

There were huge price increases up to Christmas coupled with a lot of speculation of supply issues. However, since Christmas, the traders are now saying that material is not the problem only organising trucks to deliver is more of a problem. If you order now a delay of between two and three weeks is normal.

New Zealand

The mainly grass-based country at the other side of the world has seen fertiliser prices move right up of late with prices quoted above (€850/t) effective from the end of January moving up by €150/t almost overnight. Summer drought is also an issue in parts.

US

There were no major supply issues reported in the Midwestern states, which is predominantly a cropping region. Prices have increased substantially compared to this time last year – up from €290/t to €808/t (150% increase).

Canada

Canada has one of the more expensive prices for urea and Canadian farmers have seen prices rise from €509/t to €925/t, which on the scale of things is not as big an increase compared to last year, only an 81% increase.

Sweden

In Nordic countries, seasonal buying hasn’t really started yet but most put prices at 8,000 krona (€770/t) or over four times the price of this time last year.

Ammonium nitrogen

Ammonium nitrogen (27% N or 34% N) rather than urea is much more prevalent at farm level in Denmark, the Netherlands, Scotland and Wales. Prices gathered from all four countries in our survey were very similar ranging from €2.39/kg to €2.42/kg nitrogen. That ranged from €630/t in the Netherlands (26% N) to €814/t (34% N) in Scotland.

Additional contributors: Adam Woods, Declan Marren, Anne Finnegan, Andy Doyle, Darren Carty, Aidan Brennan.

In short

  • Urea is cheapest in the United States, almost 20% cheaper than Ireland.
  • Northern Ireland, Scottish and Canadian urea prices are among the most expensive.
  • Prices softening in Australia for forward purchases into May.