As the world emerges from the pandemic and economic activity builds, unforeseen consequences are reverberating throughout global trade. The fertiliser industry is not immune to this market turbulence and the knock-on inflationary pressures that are affecting many commodities.
Over the last ten days, energy prices have spiked upwards, especially in northwest Europe. The effect of this is being seen in significantly higher nitrogen fertiliser prices and uncertainty about forwarding pricing to the spring. With the mothballing of UK ammonium nitrate production and the resulting media focus on shortages of carbon dioxide, the British market for nitrogen fertilisers is particularly volatile at the moment.
We want to reassure you that we are in daily touch with our strategic supply partners to ensure continuity of supply. We are fortunate that we have the capability and capacity to hold large stocks in both Great Yarmouth and Sunderland to even out fluctuations in availability.
Shipping is just one side of the fertiliser equation. We must also consider deliveries to farm and we will be working with our customers in the next few weeks to ensure that autumn deliveries are executed promptly to release additional storage capacity in our terminals for replenishment cargoes for delivery in the spring.
Given the market situation, we are taking additional steps to match sales to supply. Our attention to detail in this regard will help us keep our promises to our regular customers and we ask for your understanding and appreciation as we seek to balance availability to demand.
With input high prices comes an ever greater need for more accuracy and efficiency in application. There are huge efficiency, environmental and operational benefits from the use of liquid nitrogen but above all, the Nitrasol Factory-to-Field system marries the UK’s most modern liquid fertiliser terminals with the lowest total emissions of carbon and ammonia to help your farm be even more productive and sustainable.
We are working hard for you and with you achieve those aims as well as balancing supply and demand to help our customers produce the food our country needs.