Fertilizer prices have increased, increasing cost pressure on farmers

According to the Ministry of Agriculture and Environment, in the southern region, in May, Chinese DAP fertilizer reached 1.02 million VND per 50 kg bag, an increase of nearly 94,000 VND compared to the previous month; Korean DAP to 1.32 million VND per bag, an increase of more than 116,000 VND. Chinese urea price increased by nearly 78,000 VND to about 633,000 VND per bag, while Phu My urea increased by 80,000 VND to nearly 700,000 VND per bag. Many NPK lines also increased by 78,000-92,000 VND per bag.

In the North, fertilizer prices also increased slightly, about 1-3% compared to last month in many categories.

This is the second price increase since the beginning of the year. Previously, when tensions in the Middle East escalated in March, many businesses in the industry adjusted selling prices to increase by 5-11% in March.

According to fertilizer businesses, domestic prices continue to be affected by developments in the world market. Although retail fertilizer prices in the US in May decreased slightly after more than three consecutive months of increases, the average price was still significantly higher than the same period last year. Of which, urea prices increased by 27%, DAP increased by 14%, MAP increased by 15%, UAN32 increased by 19%, UAN28 increased by 28% and anhydrous ammonium increased by 44% over the same period last year.

The rising world price trend is also reflected in Vietnam’s import market. In the first 5 months of the year, the average price of imported fertilizer reached nearly 335 USD per ton, up 5.7% over the same period last year, although import volume decreased by more than 24%. China continues to be the largest supplier, accounting for 45.5% of the market share, followed by Russia and Laos.

In addition, conflicts in the Middle East continue to push up oil prices and input costs. Businesses say international logistics costs are currently increasing by 20-30%, while domestic transportation costs are increasing by 15-20% and there are no signs of cooling down. At the same time, the demand for fertilizer increases sharply as the Mekong Delta enters the summer-autumn rice crop, while the Central Highlands is in the stage of fertilizing durian, coffee and pepper gardens in preparation for the year-end harvest season.

The pressure on rising input costs occurs in the context that selling prices of many agricultural products have not recovered accordingly. According to farmers and associations, fertilizer prices have increased while output prices of many products, especially rice, remain low, causing many production households to face the risk of reduced profits or even losses.

Currently, fruits such as mango, dragon fruit, plum, jackfruit, and watermelon are sold below cost, causing farmers to lose money.