UK Farmers Told to Order Fertiliser Early Amid Price Hike
UK arable farmers and merchants are being advised to order fertilisers early for the coming season due to rising prices, according to industry groups. The Farming Fertiliser Stakeholder Group has urged suppliers and growers to place orders as soon as possible, as key nitrogen products see significant price increases.
Rising raw material costs have led suppliers to adjust urea and ammonium nitrate prices on a near-daily basis, said James Davies, business development manager at AF Group. The current prices for granular urea are around £470 per tonne delivered, while UK-produced ammonium nitrate is priced between £455 and £460 per tonne.
The Farming Fertiliser Stakeholder Group warned that late orders could lead to supply chain bottlenecks, as the industry struggles with high energy costs due to the ongoing war in Ukraine and gas price instability in Europe. The UK's planned carbon border adjustment mechanism (CBAM) will also contribute to higher fertiliser prices from January 2027.
Growers are being advised to engage with suppliers now, lock in tonnage where budgets allow, and avoid waiting for a price dip that is unlikely to materialise given current supply dynamics. The advice applies not only to UK growers but also to buyers outside the country, as nitrogen fertiliser markets are globally linked through natural gas prices and shipping routes.