Japanese farm group to raise fertiliser prices by up to 14.5%
Japan's National Federation of Agricultural Cooperative Associations, or Zen-Noh, has said that it will raise fertiliser prices for autumn use, distributed from June through October, by up to 14.5% compared with spring fertilisers distributed through this month.
According to Zen-Noh's announcement on Friday, the price revision reflects robust demand for fertilisers, the impact of a weaker yen and a surge in raw material prices driven by tensions in the Middle East.
In particular, international urea prices have been rising, as much of the global supply comes from the Middle East.
Although Zen-Noh procures urea from Malaysia, it will sharply raise the prices of imported urea by 14.5%.
Prices of potassium chloride are planned to be increased by 7.3 pct and those of calcium superphosphate by 4.9%.
Prolonged tensions in the Middle East could also impact markets for other products and ocean freight transportation fees, raising the possibility of further hikes in prices for spring fertilisers to be set in October.
"If fertiliser price hikes would heavily impact producers' management, we are eager to consider various measures from the perspective of supporting them," Japanese agriculture minister Norikazu Suzuki said at a press conference on Friday.
[Copyright The Jiji Press, Ltd.]
