A number of factors are causing the decline in fertiliser sales, with the Fertiliser Association of Ireland (FAI) identifying “huge concern” around non-compliance being one of the biggest contributors.
According to the latest figures published by the Department of Agriculture, Food and the Marine (DAFM), the sales of nitrogen (N) and phosphorus (P) fertiliser in the first quarter (Q1) of 2024 were down by 83% compared to the same period last year.
The FAI stated that under new and “complex rules”, farmers don’t know what their allowances are.
A spokesperson for the association told Agriland that 2023 fertiliser plans are “irrelevant” for 2024, with changes to nitrogen allowances per hectare.
From January 1 this year, as outlined by DAFM, farmers with all of their land at 220 have to achieve a stocking rate no greater than 220kg N/ha for the year 2024 overall.
DAFM has advised farmers to choose the best way to achieve this by speaking to a farm advisor.
The FAI stated that farmers are waiting long periods to receive plans, as advisors are under pressure from “additional workloads”.
“Our co-op and merchant members are telling us that phones are ‘hopping’ with questions from farmers as to what their nutrient allowances might be.
“Farmers are being directed to get nutrient plans developed and in the meantime, buy a few pallets of nitrogen to keep them going until their nutrient plan is returned,” the spokesperson said.
This has caused a “problem” for delivery and logistics, with farmers unable to commit to fertiliser purchases, according to the FAI.
Other issues
The FAI stated that it doesn’t think supply is currently having an effect on sales, but that current sanctions on Russian imports will impact Ireland’s phosphate supply.
Russia was supplying 40% of Irelands total fertilisers requirements in 2021 and about 70% of the country’s phosphate requirements, according to the association.
Alternative options are being used for nitrogen supply, but the FAI said it is “difficult” to replace “such a huge chunk” of the country’s phosphate supply.
The FAI added that prices of fertiliser are already back by a large amount on last year, and it doesn’t think prices are effecting the drop in sales.
However, National Fodder and Food Security Committee chair, Mike Magan said that he sees farmers “hesitant to commit” to purchases, as they are “waiting for prices to fall”.
“There’s a reluctance, because of the volatility of prices in the last few years and farmers’ confidence is shaken,” Magan said.
He said many farmers are only buying when they need it and in small amounts, instead of stockpiling.
Magan advised farmers to “cover themselves” and have the amount they need.
“Spring could take off with a bang and you don’t want to be left looking for it,” he added.
Fertiliser sale predictions
The FAI stated that industry predictions show that the fertiliser market will be up 15-18% on last year to about 1.33 million tonnes.
It said that traditionally 50% of fertiliser sales are delivered to farms by the end of March.
To achieve this in 2024, the industry is looking at moving over 20,000 lorry loads of fertiliser between now and the end of the month.
“Nearly 900 lorry loads per working day. The scale of the task is huge,” the FAI stated.
It also predicted a period of long delivery delays in the next few weeks, as orders for silage fertilisers come in.
“In some cases, this could push back application dates for silage fertilisers as orders will start backing up,” the association stated.
“After a particularly wet winter, available nutrients in the soil profile may also be reduced.
“It’s expected that crops will be “hungrier” once growth starts to kick in and nutrient deficiencies will limit growth potential where present,” the FAI added.