Nitrogen prices

[SASKFARMER]

Yes you are right it is FNA who seem to be the only ones who are trying to help farmers in Canada.
Doesnt it make cents since their is cheap 46-0-0 out in the world so why cant we have it in canada. Oh yea we let the retailers and cargil create a Monopoly and we have to bend over and leave them in charge just like seed and chemical well its time for a change.
They tell us farmers we have to compete on the world stage but yet have to support local and multinational companys with inflated prices. I have not yet seen any of the cargil family cutting back to survive like most farmers in Canada.
I am not just picking on Cargil there all in bed together to mine the canadian farmers.

[SASKFARMER]

Price in eastern Saskatchewan is $409.00 rail siding.
price local retailer is $469.00
60.00 a ton x 88 $5280.00

[Pulseman]

Can buy 46-0-0, bulk VCR (Vancouver) for US$170 - 190 per MT. Saudi or Ukraine product. 5000 MT minimum purchase, buyer pays per L/C, N guranteed and tested by SGS. Cost on top is vessel unloading, railcar loading shipping to unload point. Problem is tonnage, coordination and one has to have an acount with CN or CPRail.

So the guys with C$400 are still making good money.

[SASKFARMER]

Pulse man you sound like a smart skeptic. Do the math a rail car holds 88 MT so break down price 218.00 thats 56 rail cars. to saskatchewan freight back haul yeas thats a great price but what is his price per rail car more realistic for farmers then thats the real price of the N. But if farmers keep thinking out of the box maybe we can control the price of our imputs.
Round up generic out of china is 1.00 per liter thats the real cost of the product and to get it to canada covering all middle man and freight its 3.95 canadian. oh yea it needs to have special tags on each barrol saying what it is.

[SASKFARMER]

Just talked to CNR and shipping cost from vancouver to East Saskatchewan is
47.81 plust 218.00 cost of 46-0-0 equals a total cost of $265.81

this is well cheaper cost than locals and FNA but need to take 56 cars and need $1,000,000.00 down to perform this quote. but savings on 80,000 acre farm are $1,000,000.00 saving that is not going to Cargil AGrium or your local dealer.$12.50 an acre saving.

[SASKFARMER]

On our farm we would need 3.8 cars or 336 tons = $89,367.15 cost - local dealer for anhydrous (.40) cost is $136,800.00 their is a saving to me of $47,432.00

[nicolaas]

It sure is an eye opener to see the markup on the inputs we use. Makes me think i may have to switch from anhydrous to granular this year(though anhydrous is so damn handy)! I sure hope that anyone that uses straight granular for their Nitrogen will utilize this offer. I know for a fact that the generic ivermectin introduction into Canada caused a $150 drop in the 5L brand name ivermectin within about 2 months. Same goes for the generic roundup --- monsanto is now trying to sell a souped up version of their product to compete (I ain't gonna bite). THe more farmers support the FNA, the cheaper everything should get. I believe they even sell RFID tags for about $.75 cheaper than my local supply store. Most farmers have had enough, and realize that we have been fleeced by the big companies for years. I know I have, and will go out of my way to buy through the FNA.

[Pulseman]

The mark-ups are the reason why all companies in the agbusiness post marginal profits in grain handling, but good profits on inputs. No doubt that money needs to be made, but while most farmers scramble to brake even, this money taking from the dying is not good and reflects the lack of competition, but the Government seems to like it this way.

On return to some questions why not get into this business: a) I got to much else going already and lack the $1,000,000 plus storage to get going on this.

[poorboy]

Saskfarmer,

There will have to be costs added for unloading the ship and reloading onto the railcars. A cost for insurance in transit and bonds that have to be posted will most likely need to be included. This could easily be $50/tonne.

Looks like most of the savings are just in dealer markup.

In Alberta you could buy lots of 415-425 Urea in October and it was trucked in from Belle Plain, Sask. Bigger farms probably got a lot cheaper yet.

Hopefully FNA can get a few good unload and blending facilities set up and offer good pricing for year round fertilizer. There should be some great deals in the off season that never seem to get passed on to me.

Watch the quality of the product you are getting. Apparantly there are different "grades" of urea. Some are very coarse and some are almost dust. Make sure to ask what you are getting.

[mb_rancher]

ANd this is cash price on this 46.0.0 right?

[SASKFARMER]

The freight price of $4208.00 per rail car has insurance built in.

the cost of ship unloading is the question.

there still is a huge profit somewhere.

and for once buying in the fall is a game the companys use to create cash flow for them. farmers think they are big buy paying in fall to save income tax. so the companys have created this false economy that they cant get the product out in spring etc.

look at natural gas price in canada it is the lowest it has been in january in the last 5 years so why is nitrogen so high.

[cropduster]

It is going to be interesting to see how the fert companies try to get `off` these burdensome supplies of high priced product.They have ,I believe,locked in these prices with product and are now caught on the wrong side.Farmers are learning that there are options out there and they aren`t with the traditional suppliers.Hats off to the innovators!!!!