Tirlán cannot ‘guarantee’ fertilizer supply in the first half of 2023 unless farmers agree to buy now

Tirlán wants its suppliers to commit to buying fertilizer for the next year to guarantee their supply in a volatile market.

It comes as a sub-group of the National Fodder and Food Security Committee warned this week that farmers should consider pledging to secure 20-30% of their total annual fertilizer needs for 2023 over the next few months. next weeks.

It follows a period of widespread market volatility and restrictions on fertilizer production due mainly to high gas prices in Europe.

Under a new initiative, suppliers in Tirlán will be offered the opportunity to pre-commit to the purchase of fertilizer for next spring and benefit from an interest-free deferred payment model. It says this will allow farmers to secure their supplies now with payments scheduled during key supply months in 2023.

Early engagement will help the cooperative plan ahead for the incremental purchase of fertilizer during a time of difficult supply chains and limited availability.

Seán Molloy, Director of Ingredients and Agriculture, said: “This approach will allow farmers to agree to buy now but defer payments over a scheduled period with interest-free credit during that period.

“This will allow our team to work in tandem with our farmers to plan our purchases from wholesale suppliers as they work to navigate a challenging market.

“We will not be able to guarantee supply of fertilizer to customers in the first half of 2023 unless a customer commits to this contractual approach. It is vital that we plan our fertilizer purchases now to ensure supply in the spring of 2023.”

Tirlán Fertilizer Purchase Initiative

Tirlán says farmers who choose not to enter into a fertilizer contract run the potential risk of not being able to secure sufficient supplies for the upcoming season.

  • Customers purchasing fertilizer will be asked to agree to a contract setting out the product, agreed tonnage, price and approximate delivery date for spring 2023. Milk suppliers will be offered deferred payment with interest-free credit on all contract tonnage purchased – with payment for the product was evenly distributed across all milk supplies from April, May, June and July 2023.
  • Grain suppliers will also be offered a deferred payment option with interest-free credit on the tonnage of fertilizer purchased under contract. A harvest payment option will also be facilitated.
  • No customer will be permitted to contract for more than half of their annual fertilizer requirements for deferred payment options.
  • Customers wishing to take advantage of this offer must commit to a fertilizer contract at least eight to 10 weeks before the fertilizer is needed on the farm. However, it is important to engage as soon as possible to provide a better opportunity to get the preferred products.

The organization will continue to offer farmers who wish to obtain product for immediate payment the opportunity to do so.

Seán Molloy added: “As always, we will continue to do everything we can to facilitate our grain customers and regular ranchers who have been buying fertilizer stock from us for many years.”

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