A co-op has written to farmer customers regarding the “continued” wholesale price increases for farm products, especially animal feed and fertiliser.
Gareth Whitmore, general manager/CEO, of Inishowen Co-Op, penned a letter to clients on December 9th, 2021.
He told farmers that “predictions based on current market prices suggest that animal feed will increase in January 2022”. Whitmore added that further increases “cannot be ruled out”.
Feed and fertiliser price increases
He said that fertiliser prices have “stabilised” for now; however, he added that suppliers “will not and cannot guarantee availability for March/April 2022”.
Whitmore stressed that the co-op is committed to helping farmers through this time.
The co-op introduced a rebate scheme in 2021 and implemented a further rebate scheme in October to offset the animal feed price increase on October 1st, 2021.
According to the GM/CEO, this amounts to €10/t. “We will review this further in 2022,” he told farmers in the letter.
Fertiliser availability in 2022
He outlined that raw material availability and energy prices have resulted in fertiliser price increases in recent times. Despite this, he confirmed that the co-op has secured some stocks.
The co-op encourages its farmers and exiting customers to avail of current stocks “at a set price”.
“The set price, while increased from last year, is below the current market price and will remain set while our stocks last.”
“As a result, we have had to set limits on all sales but are happy to offer each of you the same quantity that you purchased last season (while stocks last).”
“The discounted sale price is the final rate to you and is the below current supplier prices,” he told farmers.
Whitmore said the co-op will continue to support the Inishowen farming community by implementing rebates and “seeking best value where we can”.
What you can do about rising fertiliser prices
Last week, the Fertilizer Association of Ireland issued a statement to highlight factors impacting high fertiliser prices and supply in the Irish market.
The body said that whilst “we are price takers” and have “little control” over markets, farmers have “full control” over factors inside the farm gate.
- Soil testing;
- Soil pH;
- Organic manures;
- Balancing nutrients.
“By being cognisant of these factors, we will ensure that any money spent on fertiliser will give the farmer the best return on investment,” a spokesperson said.
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