Forward ordering fertiliser avoids supply chain crunch
Farmers are being urged to lock in their forward orders of fertiliser now to protect themselves from the risk of supply chain disruptions ahead of next season’s planting.
In recent years geopolitical tensions, the cost of energy and fuel, congestion at ports, and extreme weather events have all contributed to supply chain disruptions which have resulted in ‘just in time’ fertiliser orders arriving partially or too late for many Australian farmers.
Nutrien Ag Solutions is encouraging producers to take control of their destiny by planning ahead and forward ordering fertiliser with the help of objective data available from its crop advisers.
Nutrien Ag Solutions Goondiwindi branch manager Hamish Wyllie said forward planning was the best way to secure fertiliser supplies, and potentially take advantage of low points in the price cycle.
“There’s been quite of lot volatility in the amount of fertiliser importers are bringing into Australia, particularly in Queensland, and we know from experience that there can be shortages at critical periods in the cropping calendar,” Mr Wyllie said.
“You’ve got to make sure you’re not put in a situation where these supply shortages hamper your productivity.”
Goondiwindi broadacre farmer Ben Turner, of MH Premium Foods, has been caught out by supply shortages in the past when using the traditional ‘just in time’ approach to purchasing fertiliser.
“We forward order so we have fertiliser when we want to use it,” Mr Turner said.
“We forward order 100% of our pre-plant fertiliser for our dryland and irrigation crops and this ensures we have fertiliser in the ground for an average year. Later on, if it looks like it will be an above average year, we will top that up with an order for an in-season spread.”
The 15,000-hectare aggregation produces irrigated and dryland summer cotton and sorghum, and winter cereals and pulses, on heavy black floodplain cracking clay soils. The business usually purchases a combination of urea and an SOP / MAP blend suited to the soil types.
When not in use housing grain, the 8000-tonne capacity on-farm storages are used to store fertiliser for up to half of the year.
“Forecasting your fertiliser needs with your supplier is extremely important, even if you don’t go ahead and pre-order all of it. From a business planning perspective, the critical thing is to know what you need and have it available when you need it, because you don’t want to be waiting for those ships to come from such a long, long way away.”
While on-farm storage supports growers in this approach, Mr Wyllie said that farmers without storage could also spread their risk by forward ordering up to 60 days ahead of delivery.
He said the strategy could also provide financial returns as fertiliser prices typically peak at times of high demand – another reason to avoid ‘just in time’ ordering.
“Getting away from those peak periods may be a way to avoid the impacts of price volatility, when you see changes of $20-$30 per tonne in the space of just a week,” he said. “And having fertiliser delivered during peak periods also means you’re subject to risks associated with the weather and availability of freight trucks.
“Just in time management isn’t possible like it used to be. Just in time delivery is becoming a thing of the past.”
For more information on developing your fertiliser management plan for your operation, Nutrien Ag Solutions' crop advisers are available to discuss your specific needs. Visit nutrienagsolutions.com.au or speak with your local branch.