Farmers in Europe are becoming increasingly concerned about escalating fertilizer prices as natural gas prices in the region continue to soar.
Farmers are questioning whether to curb their planting plans for winter wheat and barley crops, which are now being sown and will require fertilizer in early spring to boost yields and quality.
The General Secretary of French wheat growers’ group AGPB, Philippe Heusele, said members are concerned not only about the price, but whether there will be enough supply of nitrogen fertilizer for next spring, according to a Bloomberg report late this week. He said members are questioning whether to plant 100 percent of what was foreseen before winter or not.
Bloomberg reported that French corn growers also might limit plantings next year in favor of less nitrogen-intensive crops, citing the Chair of the Grains Council at Crops Office FranceAgriMer, part of France’s Ministry of Agriculture, Benoit Pietrement.
In Russia, sugar-beet growers are also planning cutbacks due to rising production costs.
Most fertilizer is not applied until the spring, “giving markets time to turn lower and lessen the impact on food output,” Paris-based consultant Agritel said in a note, cited by Bloomberg.
“For now, Paris wheat futures are trading at an eight-year high amid shrinking global stockpiles,”Agritel wrote. “The unprecedented fertilizer situation is also supporting next season’s prices. A risk premium is already integrated.”