Fertiliser production ramps up
CSBP Fertiliser’s granulation plant started production in September, earlier than previous years to have products ready in advance before the next season.
Distributions to the agricultural supply chain are anticipated to have further ongoing impacts on the production and availability of fertiliser into 2022.
It is well known the pricing of fertilisers globally have remained high relative to historical levels, directly reflecting the high international gas prices and lower internationally traded volumes. This is due to the reduced plant production in offshore markets, high commodity pricing and the export sanctions from key markets like China and Russia.
Consumer demands and commitments in WA, however, are currently ahead of the dame time in 2020.
Mark Scatena, CSBP Fertilisers general manager, noted this was a result of customers wanting to secure availability given the current risks to supply chains.
“CSBP has been working with growers to achieve supply certainty by capturing grower intentions through fertiliser forecasts for 2022 to understand the seasonal fertiliser requirement.” Mr Scatena said.
Rob Clayton, Nutrien Ag Solutions managing director explained it was inevitable that the agricultural supply chain issues were continuing to impact supply, adding, "This is due to a combination of strong global demand, export restrictions and caps in key export markets which have limited supply, placing pressure on already stressed supply chains."
Careful planning has been required for local fertiliser manufacturing companies as navigating international supply chains and tight domestic labour markets have providing challenging.
With continued market concerns looming over supply for next year several growers have indicated the intent to commit for next year and suppliers in WA have been cooperating with customers to provide as efficiently as possible.