Southeastern, PA. 30 miles west of Phila | Okay guys this has been running through my mind long enough so now I am going to unload and hopefully ya'll understand. First off I am associated with a small family owned retailer so what I am about to tell you I know first hand and also am hearing from my friends in the industry.
There has been a lot of talk on this board about fertilizer prices dropping, with some retailers holding on tho higher priced product. Following is my opinion. Retailers along with growers made a ton of money in the past 18 months as everything went up! Now as things go down the farmers are taking the loss but some retailers are holding out. I think that is pathetic becuase as recent as August the talk in trade magazines and on the field was 2008 is going to be a banner year for profits! Well if your retailer/coop is financially sound they should be able to take there losses now and still keep there heads above water! So the take home message is I have no pity for retailers complaining right now about selling fertilizer as a loss! It is only fair because this is ag! You take the good with the bad and don't count your chickens before they hatch!
Now to you as growers: If your supplier is holding out then you also need to hold out or go somewhere else! In regards to supply you need to communicate to your retailer what you will need at a fair market price not at what the price was 1 month ago! The guys who will get shorted on product are the ones who hold out until spring and then suddenly want hundreds of tons of product. Now to complicate matters most retailers and a lot of farmers are holding out for higher grain prices come spring! If that actually happens then you can kiss the lower fertilizer prices goodbye. So the take home message is the grower is still in a tough position but I believe the guy who is willing to shop around and buy product at a certain price is the one who will come out ahead.
Don't forget this is my opinion from someone who is outside of the corn belt, maybe things are totally different out there?
So what is a fair market price for fertilizer? We all need to post what current pricing is so that you have some bargaining power. Same idea as going to a used car dealer and knowing ahead of time what a paticular vehicle is worth. So following is what current market prices are at the grower level. (do not e-mail me about buying, I am not in that position!!)
30% delivered to the farm by the 25 ton load $300.00/ton = $0.50/unit
0-0-60 delivered to the farm by the 25 ton load $900-950.00/ton
11-52-0 delivered to the farm by the 25 ton load $800.00/ton
These are the prices that I have access to right now. You tell me how that compares with your area. Please be specific like a county or some city within 25 miles or less of your farm.
Merlin |
Fertilizer industry & the retailers
