Fertiliser – What’s next? - PAC Report by Ellen Garland

By Ellen Garland

We have discussed Urea endlessly over the last 6 months, but for good reason. I have gone back through the prices that we have sold Urea at since May last year.

May 2021 – $560.00 + GST per tonne
June 2021 - $620.00 + GST per tonne
July 2021 - $775.00 + GST per tonne
August 2021 - $855.00 + GST per tonne
September 2021 - $858.00 + GST per tonne
October 2021 - $920.00 + GST per tonne
November 2021 – $1,200.00 + GST per tonne
December 2021 - $1,420.00 + GST per tonne
January 2022 - $1,395.00 + GST per tonne
February 2022 - $1,120.00 + GST per tonne
March 2022 – $1,345.00 + GST per tonne
April 2022 - $1,600 + GST per tonne
May 2022 - $1,225.00 + GST per tonne
June 2022 - $1,250 + GST per tonne
July 2022 - $1,120.00 + GST per tonne
August 2022 - $1,310.00 + GST per tonne
September 2022 – Yet to sell any at time of writing but hear it will go above and beyond $1,400.00 + GST again.

Back in May 2021, and relatively new to the Fertiliser game, I had access to a large amount of Urea at $580.00 + GST per tonne and remember being advised not to panic that the price wasn’t going to get too out of hand. Don’t get me wrong, hindsight is a great thing, but who would have thought 12 months later we would be selling it for $1,600.00 per tonne.

A quick recap on what got us to that point, Covid, China export bans, Russia invading Ukraine, Gas prices, Shipping costs and the list goes on.

So, what can we expect going forward with not only Urea prices but all Fertilisers? With plenty of “he said”, “she said” talk out there at the moment, the fact remains Fertiliser will continue to be expensive with upward pressure on pricing. But the main issue going forward will be availability. With talk of a worldwide Ammonium shortage, this will no doubt put pressure on not only Urea but also MAP and DAP. The rebuy price for MAP is said to be $1,600.00 + GST per tonne. If you want to be assured that you are covered and avoid the ongoing price rises, please consider pre-ordering. We can currently go out to the end of January 2023 for MAP and November 2022 for Urea.