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The NFU has warned farmers towards any panic shopping for of ammonium nitrate (AN) fertiliser after producer CF Fertilisers introduced plans to completely shut its second manufacturing plant in Cheshire.
NFU combinable crops board chair Matt Culley famous that CF Fertilisers’ Ince manufacturing unit had been briefly closed since October – and this had not affected the supply of latest seasonal fertiliser.
“Farmers are going to must search for various merchandise for his or her sulphur and their compound blends, however we don’t need this announcement to panic the business,” stated Mr Culley, talking from this week’s Cereals occasion in Cambridgeshire.
See additionally: NFU warning over lack of transparency in fertiliser markets
He urged arable growers to deal with their nitrogen utilization for the following cropping season, together with how a lot they want, in addition to the place they’ll supply their sulphur merchandise, beforehand produced at Ince.
This included exploring various choices for sulphur, corresponding to polysulphate, and extra foliar-supplied sulphur merchandise for subsequent spring.
“Sulphur is an enormous a part of our inputs. To get wholesome crops of wheat, sulphur is vital,” Mr Culley stated.
Competitors from imports
CF Fertilisers UK, the nation’s solely fertiliser producer, stated it wanted to restructure its operations to make sure a continued provide of fertiliser and carbon dioxide, the opposite key product of the manufacturing course of.
Fertiliser gross sales to home clients had fallen by practically 30% for the reason that 2017-18 season, it stated, “attributable to intense competitors from lower-cost imports”.
Following a overview, it had determined to focus its fertiliser manufacturing operations on its Billingham facility in Teesside.
CF Fertilisers UK stated the everlasting closure of the Ince plant, north of Chester, might lead to as much as 283 redundancies – and it could seek the advice of unions and workers shortly.
The Billingham website produces about 128,000t of AN annually, whereas Ince had produced 95,000t earlier than it stopped manufacturing final September.
However the firm insisted Billingham “has the capability to provide sufficient AN to satisfy all forecasted home buyer demand”.
“Billingham has extra operational flexibility from a 40,000t ammonia storage tank and the flexibility to import lower-cost ammonia if essential,” it added.
Hours earlier than the announcement, NFU deputy president Tom Bradshaw had questioned why the Ince manufacturing unit couldn’t be reopened.
Ukraine warfare impression
Fertiliser costs have soared and world provides have been hit since Russia’s invasion of Ukraine in February. This has pushed up the value of pure fuel, a key ingredient within the course of, and led to extreme EU sanctions towards Russia, a significant exporter of fertiliser.
In accordance with AHDB information, UK nitrogen fertiliser costs have climbed from £281/t in April 2021 to £785/t in April this yr.
Defra stated CF Fertilisers’ resolution whether or not to shut or reopen the Ince website remained a industrial matter.
Extra transparency ‘important’ in fertiliser markets, says union
The federal government and business should construct transparency into the fertiliser market to enhance farmer confidence in decision-making and construct resilience within the nation’s meals safety, the NFU has insisted.
NFU deputy president Tom Bradshaw stated: “The [fertiliser] value is there for a second after which it’s withdrawn. It doesn’t give farmers any time to make choices and it feels as in the event that they’re being held to ransom.”
Defra stated it recognised that higher transparency within the fertiliser market was possible to assist mitigate the results of latest value volatility. Will probably be discussing the perfect methods to handle this with business representatives this week.
The Agricultural Industries Confederation, which represents the UK agri-supply sector, has welcomed additional dialogue with farming stakeholders to know their considerations regarding fertiliser markets.
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