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Fertiliser Update - August 2019

Fertiliser Update - August 2019
By Dave Mitchell 6 months ago

We know that two of the biggest factors that could affect the fertiliser prices going forward are currency and a ‘no deal’ Brexit.

The Bank of England has cut its forecasts for UK growth over the next two years. It also warned that a no-deal Brexit would hit the economy and trigger a further drop in the value of the pound.

A weak pound increases the cost of any imports and inevitably has a knock-on effect on all of the fertiliser prices across the UK. Some price lists were withdrawn last week due to the increase in imported raw materials.

If the UK left the European Union without a deal, it would automatically fall back on World Trade Organization (WTO) rules. These WTO rules would see tariffs applied to certain fertiliser products, at a rate of 6.5%. This would push UK fertiliser prices up further.

Whilst we know that prices are higher than they were in the previous three years, it may be worth customers covering themselves, for some of their forward fertiliser requirements and spreading the risk, in these uncertain times, if they haven’t already done so.

If customers are now able to buy fertiliser and can take delivery, please contact our fertiliser desk to discuss the options available.