For years I have been giving examples of what we are charged for products VS our Cousins in USA and for years nothing changes Canadian farmers pay what ever the company's ask and we keep going.
FNA is a prime example they do all the work to get Clear out 41 into Canada. I mean look at all they had to do, dealing with Bureaucratic idiots isn't easy, trust me. But I have neighbors that are totally pissed at them because they cant go to the US and get the product now. I told the one guy look for a new generic and you do all the ground work to get it in Canada and then see if you feel the same way.
But anyway here is a few Anhydrous, comments.
Anhydrous Could Hit $800 per Ton This Spring in the USA. 1 short ton converting to metric tonne .9078 but in Canada my guy is saying could be $1200.00 a tonne out of Belleplain. Hm is someone BSing us again. $400.00 per tonne difference then do the math and its worse.
Last summer retail prices averaged around $500 per ton in the USA and went up as high as $650 per ton into the fall application season," he says. "We're going to see a substantial increase in spring prices, starting at around $645 per ton up to the high $700s and maybe over $800 per ton."
'Money grab'
While some retail dealers are offering forward pricing for spring application, many are still waiting to see how it "shakes out," says Dillier. Either way, farmers aren't happy.We just got quotes from our usual source for fertilizer - $685 per ton for ammonia and $360 per ton for 28% solution," says Brian King, who farms near Marion, Ind. "These are up from $640 and $340 just three weeks ago. The manager says the prices may be good for one day or two weeks, until the next round of increases comes along. What a bunch of B.S. this has become.
"Farmers have finally started to be rewarded for the risks we take and now every supplier has their entitlement mentality in high gear and are forcing their collective hands deep into our pockets to extract their piece of the pie," he adds.
"Where is the 'extra' demand coming from? Are there magically more acres created in some far flung area? There is more to this money grab than is being reported."
Price relief
Dillier believes some price relief will occur later in 2008, thanks to added production capacity. "Prices may not fall back to the levels of a year ago, but I don't think they will continue to rise dramatically from the prices we are at now," he says.
Added fertilizer capacity is scheduled to be built in countries where there is cheap natural gas - mostly the Middle East, Qatar, Latin America, and in places where there hasn't been any production until now, such as Peru and Trinidad. But it will take some time to get those new plants and additions online.
World fertilizer production has increased in the last two years and will increase even more in the next two years. The problem now is, demand outstripped that capacity. "Three years ago the marketplace was worried that these capacity additions were going to hurt the market price for fertilizer because of oversupply," says Dillier. "That was from the industry perspective. That has not happened; prices have shot up to record levels.
If a recession occurs in Brazil, China or India, where economies are growing fast, fertilizer demand will fall. But even without an economic hiccup, increased production capacity should somewhat temper these higher prices.
"I have to believe we will have seen most of the big price run up by the end of the spring 2008 planting season," says Dillier. "But prices will continue at pretty strong levels. I don't think we'll go back to the levels of a year ago for at least a couple of years."
So yes their are differences in Anhydrous again on each side of the Border. Canada high Vs US cheaper. Production from Canada.
NO WOUNDER WE STILL HAVE THE CWB INPLACE!
FNA is a prime example they do all the work to get Clear out 41 into Canada. I mean look at all they had to do, dealing with Bureaucratic idiots isn't easy, trust me. But I have neighbors that are totally pissed at them because they cant go to the US and get the product now. I told the one guy look for a new generic and you do all the ground work to get it in Canada and then see if you feel the same way.
But anyway here is a few Anhydrous, comments.
Anhydrous Could Hit $800 per Ton This Spring in the USA. 1 short ton converting to metric tonne .9078 but in Canada my guy is saying could be $1200.00 a tonne out of Belleplain. Hm is someone BSing us again. $400.00 per tonne difference then do the math and its worse.
Last summer retail prices averaged around $500 per ton in the USA and went up as high as $650 per ton into the fall application season," he says. "We're going to see a substantial increase in spring prices, starting at around $645 per ton up to the high $700s and maybe over $800 per ton."
'Money grab'
While some retail dealers are offering forward pricing for spring application, many are still waiting to see how it "shakes out," says Dillier. Either way, farmers aren't happy.We just got quotes from our usual source for fertilizer - $685 per ton for ammonia and $360 per ton for 28% solution," says Brian King, who farms near Marion, Ind. "These are up from $640 and $340 just three weeks ago. The manager says the prices may be good for one day or two weeks, until the next round of increases comes along. What a bunch of B.S. this has become.
"Farmers have finally started to be rewarded for the risks we take and now every supplier has their entitlement mentality in high gear and are forcing their collective hands deep into our pockets to extract their piece of the pie," he adds.
"Where is the 'extra' demand coming from? Are there magically more acres created in some far flung area? There is more to this money grab than is being reported."
Price relief
Dillier believes some price relief will occur later in 2008, thanks to added production capacity. "Prices may not fall back to the levels of a year ago, but I don't think they will continue to rise dramatically from the prices we are at now," he says.
Added fertilizer capacity is scheduled to be built in countries where there is cheap natural gas - mostly the Middle East, Qatar, Latin America, and in places where there hasn't been any production until now, such as Peru and Trinidad. But it will take some time to get those new plants and additions online.
World fertilizer production has increased in the last two years and will increase even more in the next two years. The problem now is, demand outstripped that capacity. "Three years ago the marketplace was worried that these capacity additions were going to hurt the market price for fertilizer because of oversupply," says Dillier. "That was from the industry perspective. That has not happened; prices have shot up to record levels.
If a recession occurs in Brazil, China or India, where economies are growing fast, fertilizer demand will fall. But even without an economic hiccup, increased production capacity should somewhat temper these higher prices.
"I have to believe we will have seen most of the big price run up by the end of the spring 2008 planting season," says Dillier. "But prices will continue at pretty strong levels. I don't think we'll go back to the levels of a year ago for at least a couple of years."
So yes their are differences in Anhydrous again on each side of the Border. Canada high Vs US cheaper. Production from Canada.
NO WOUNDER WE STILL HAVE THE CWB INPLACE!
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