Irish fertiliser prices may well remain strong for the next few months, according to Grassland Agro managing director, Liam Woulfe.

“Most people know that natural gas prices have strengthened dramatically over the past 12 months.

While price may be the issue that is uppermost in farmers’ minds at the present time, fertiliser suppliers are now more concerned about the actual availability of stocks in this country over the coming weeks.

“There is enough product available to meet February demand,” Woulfe explained.

Fertiliser manufacturers shut a number of plants around the world before in the autumn period on the back of natural gas prices rising and reluctant purchaser interest, he explained.

“But given the acceptance that strong gas prices are a reality for the foreseeable future, the industry is now playing catch up, from a production point of view.

Woulfe added:

“The same rationale comes into play from a distribution point of view. Covid has ravaged the world’s shipping and transport sectors.

“It is nigh on impossible to get a boat to come up from the Mediterranean at the present time.”

Woulfe referred to reports in the press before Christmas of gas prices crashing as being very momentary in nature.

“What we saw was a 10 to 15 day spike in gas prices during December. They rose from €90 per megawatt-hour to €175 and then fell back again to the previous level.

“Gas prices today remain at €90, which means that the pressure on actual fertiliser manufacturing costs will remain in play for the foreseeable future.”

Woulfe dismissed the suggestion that Ireland should re-establish its own fertiliser manufacturing capacity.

“The Irish market is too small. Such a venture would not be economically feasible,” he stressed.

“Taken in the round, Ireland can normally secure fertiliser at very economical prices. The reality is that we are currently coping with a perfect storm, where both production and distribution factors are concerned.”