There does not seem to be an end to the rise in fertilizer prices. The price increases are partly driven by the rapidly rising energy prices. After the gasoline price, the diesel price is now also showing a continuous upward trend.
Since the price increase gained momentum in January, KAS27% has become a few tens per tonne monthly, according to the quotation of the Landwirtschaftskammer NordRhein-Westfalen. In January barely more than € 200 per ton was quoted, the counter now stands at € 270 per ton. The price increase has only slowed down slightly in recent weeks. Kali fertilizer shows the same picture, although the price increase is much less sharp. In January a price of 250 € 40% potash was quoted while now more than 260 euros per ton is paid. On the other hand, the price increase of the compound fertilizer diammonphosphate recorded by the Landwirtschaftskammer NordRhein-Westfalen is even sharper: since the end of February the price has increased from 420 euros per ton to 530 euros per ton.
Link to grain price and corona crisis
The extreme price increases are related to the rapidly increasing energy prices. But the prices of oil, gas and electricity have risen less quickly than the fertilizer price. Not only does the energy price push up the price of fertilizer, the season also has an effect. Every year the price rises in the spring, when the demand in the northern hemisphere is high. But the corona crisis turned the energy market upside down, and with it apparently also the fertilizer market. Analysts also assume a link with high grain prices. This would increase the demand for fertilizer worldwide. Because of the high grain price, the acreage is growing worldwide, is the assumption.
Diesel price
The sharply increased fertilizer prices increase the cost price in arable farming. The rising diesel price is also driving up the cost price. After a price dip in the first half of April, the price of LTO member benefit agricultural diesel (incl. Member discount, excl. VAT) increased to almost 105 euros per 1,000 liters. This is directly related to the oil price, which has risen sharply since January from $ 50 a barrel to nearly $ 70 a barrel at present, but fell sharply in early April.
