Fertiliser Crisis – Is it set to return?

The government provided temporary support to CF Fertilisers, which accounts for 60% of the UK’s CO₂ supplies to counter the threat of chaos in supply chains, after its US owner closed factories in Cheshire and Teesside due to the cost of natural gas.

CO₂ is used for a large range of practices, including the humane slaughter of poultry and pigs to creating packaging that maintains food freshness, putting the fizz in soft drinks.

Government support to end

But this support is due to end this week and Britain’s Food and Drink Federation (FDF) has said a new deal must take place to avert a crisis this year. An FDF spokesman told the Daily Mail: “We are concerned….there will be further CO₂ shortages once again. This could lead to shortages in the products we find on our supermarket shelves – adding further pressure to families already coping with high food price inflation.”

Meat producers first in line for CO₂

Nick Allen, British Meat Processors Association chief executive, said the government had assured meat processors they would be among the first in line for CO₂ if CF Industries ceased UK production, but brewers and drinks manufacturers could be less fortunate.

Europe: 9% deficit of annual nitrogen fertiliser

Farmers across Europe are likely to have much less fertiliser. VTB Capital estimates that Europe could face a deficit of about 9% of its annual nitrogen fertiliser needs in the first half of the year and in some eastern European countries it could be much higher. Gyorgy Rasko, an agricultural economist in Hungary, believe nitrogen usage will drop around 30-40% this season, which in turn will hurt crop yields, especially if there is a drought in April and May.

Perfect storm: Less nitrogen fertiliser & soaring gas prices

Feed firm Mole Valley Farmers said the agricultural industry faced a perfect storm with a 40% reduction in European nitrogen fertiliser amid the soaring gas prices, saying China, Russia and Egypt were prioritising domestic markets and there was ongoing concern about the long-term future of the single UK plant back in operation.

Logistical challenges

MVF also said there were also logistical issues at ports where the storage of potentially dangerous ammonium nitrate was strictly controlled. Coupled with a lack of hauliers, the attributed costs have rocketed and many UK growers had reduced the amount or delayed purchasing for as long as possible. But delayed buying, the global picture and fewer trucks all pointed to this spring’s fertiliser demand far outstripping the industry’s ability to supply.

First come first served basis

Reece Woolgar, MVF logistics manager, said the cooperative was busy sourcing from further afield to secure adequate stocks for its members, adding that ordering early was the way forward: “We will continue to coordinate deliveries on a first come first served basis.”

With a large proportion of the livestock sector’s fertiliser requirements yet to be bought, the cooperative said it was urging its members to make their purchases a minimum of 8 weeks before their first spreading date.