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yourAF Fertiliser Focus

With fertiliser markets continuing to respond to global energy prices, geopolitics, and supply dynamics, James Davies, AF Fertiliser Procurement Manager, shares his latest update. Here’s what he’s seeing in the markets and what it could mean for Members as we look ahead to the months to come.

Market update

The recent tender for 5,000 t of urea out of Egypt traded at $535 Free On Board (FOB). This converts to £450 free delivered (i.e. converted to GBP before freight) which with freight, handling and bagging suggests an on-farm replacement cost of around £500/t. However, since the £20/t rise last week, prices have been holding.

Urea remains one of the best value sources of nitrogen. Whilst granular urea is currently at c. £1.05/kg N, ammonium nitrate at around £470/t equates to c. £1.39/kg N.

Plus, urea’s higher concentration of nitrogen means you need to apply less tonnage to get the same amount of nitrogen.

Cost of European production of ammonia remains high with natural gas prices at €79/MWh. Although this is slightly down from the highs of €80+, there’s still a cautionary approach from European producers of N and NS products with some reducing or temporarily stopping production.

Although product is available, any delay in ordering could have an impact on supply and delivery timescales. Specialist hauliers normally plan to move large volumes between June and September, but that demand didn’t materialise this year. Haulage between October and December is typically more difficult with less daylight hours, more so this year due to reduced capacity, tighter delivery windows, and delayed or postponed ordering.

Current as at 08.10.26

Nitrogen

Urea remains one of the best-value sources of nitrogen:

  • granular urea = approximately £1.01/kg N

  • ammonium nitrate = around £470/t which equates to approximately £1.36/kg N. 

Both urea and AN remain firm, with further increases of £10-£15/t currently being reported in the market. However, individual offers can vary depending on product origin, delivery period, availability, and supplier so the reported increases should be treated as current market indications rather than a market-wide benchmark.

Looking ahead to sugar beet & potato blends

Potato contract prices look favourable, so achieving strong yields should translate into healthy returns. In contrast, beet prices are coming under increasing pressure, so now is the time to take a closer look at your fertiliser strategy. Improving nutrient-use efficiency could be the key to maintaining a healthy margin for both crops.

Nitrogen usually gets all the attention in fertiliser planning, but consider broader nutrition including phosphate (P). It’s crucial for root development - particularly important in dry seasons – which helps the crop make better use of available nutrients.  It’s also fundamental in energy transfer within the plant, supporting tuber initiation and development in potatoes.

Phosphate remains an expensive input. Currently DAP is c.£800/t and TSP c.£630/t, highlighting the importance of making every unit of P count.

The aim isn't simply to apply less fertiliser, it is to apply the right nutrients, in the right amounts, in the right form, and available to the crop at the right time, so you’re feeding the crop what it actually needs and getting the best possible return from every £ spent.

As we look ahead to sugar beet and potato blends, nutrient-use efficiency and value per hectare should be at the heart of the fertiliser decision.

The starting point should be understanding what your soil needs. Where soil phosphate levels are already sufficient in some fields, a blanket approach of reducing phosphate applications on soils with low or declining phosphate indices can ultimately reduce yield potential and may also affect the efficiency of other nutrients. AHDB research continues to support P Index 2 as the target for most arable situations, while recognising that soil and crop response can vary.

A recent, representative soil analysis combined with an independent nutrient recommendation will establish the requirement for your crop. Your AF Fertiliser Team can use that recommendation to formulate a specific blend from the best-value nutrient sources available.

With challenges come opportunities

This could be the time to try something different - placing fertiliser. Nordic beet research results showed that placed N (50-100kg N/ha) produced a 3% yield increase on average, but placed P (20kg P/ha) produced a 21% average Normalised Difference Vegetation Index as well as 10% greater canopy cover, translating into an average 0.7 t/ha of sugar.

Using placed nitrogen, or nitrogen sources that are more readily available to the crop at the right time, could allow application rates to be reduced while maintaining crop performance, reducing your overall fertiliser requirements and input costs.

If ever there was a time to shift the focus from simply chasing maximum yield to achieving the most profitable yield and looking at where best margin can be made from every tonne produced, it’s now.

Join our AF Fertiliser WhatsApp group

Market updates as they happen, early access to new prices and special offers, as well as the chance to engage with fellow AF Members to pool orders, share knowledge, hear about ways they’re making fertiliser work harder for them, and buy better together.

To join, email your AF Fertiliser Team. We'll send you a short consent form to complete so your contact details can be shared with other members of the group.

Get in touch

Your AF Fertiliser Team can provide you with all the information required to help you identify the most appropriate and cost-effective fertiliser option for your crop. Get in touch with us today.

James Davies, AF Fertiliser Procurement Manager

Email: fertiliser@af.farm Call: 01603 881937
AF Fertiliser Procurement Manager James Davies on farm in front of a tractor