Purchasing groups and volume buyers are achieving deals that are below the official quotes for fertiliser again this season, according to the IFA.

In its latest update on the fertiliser market, the IFA says with wholesale international prices falling of late retail prices should follow suit.

“Distributors and merchants will try to wash out more expensive stock purchased pre-Christmas so it is vital that farmers shop around,” it said.

Cash this year will be king‘, the IFA says as commodity prices continue to fall and farm incomes come under more pressure.

“Many groups are buying at prices that are significantly below those on offer to smaller co-ops and merchants.

“The larger players are keen to take good business. They are offering extended credit terms at cash or near cash prices to secure volume orders,” it says.

The IFA says strong resistance by farmers to current price offers is paying off.

It says coordinating full loads among a few neighbours can cut up to €10/t off delivery costs.

“As always it is critical to shop around to get the best deal,” the IFA advises.

IFA Fertiliser Price Survey

Source IFA

Source IFA

Costs

According to Teagasc’s outlook for 2016 stable prices and usage levels mean that its forecast for total expenditure on fertiliser in 2016 is for it to remain static.

In 2015, nitrogen fertiliser sales were relatively static in comparison with 2014. Teagasc says it seems that the good weather conditions of 2015 have meant that farmers did not need to increase nitrogen usage.

Pasture and forage costs typically comprise about 20% of total production costs on dairy farms. Fertiliser purchases comprise about half of the pasture and forage cost element, with contractor costs accounting for most of the remainder.