March/April 2022 - 8

SUPPLY CHAIN
STRETCHINGFERTILIZERS
Skyrocketing fertilizer prices are popularizing
input enhancer alternatives
BY CRYSTAL NAY
MANAGING EDITOR
I
t's no surprise now that supply
chains have been disrupted across
the board. What growers - and
everyone from processors to retail
consumers - are experiencing are very
unique market conditions, augmented
by the highest inflation numbers since
the 1980s. Some are COVID-related,
some not, but the rising tide of the costs
of materials has affected everyone.
Every supply chain has its particular
nuances and fundamentals. With the first
signs of logistics trouble in California
agriculture with the inability to move
tree nuts, the domino effect reached
all of agriculture, including inputs and
growers' ability to obtain them.
Some suppliers have found themselves
in a unique position in this situation.
While some products are difficult to get
a hold of, other lesser-known options are
8 MARCH/APRIL 2022
sitting on shelves waiting to be proven in
the field for skeptical growers.
Matt Nicoletti, director of business
development at Penny Newman, has
found himself in this exact scenario.
UAN32 is the most widely used
synthetic nitrogen (N) source for
California tree nuts. About 14 million
tons of UAN32 are consumed in the
U.S. annually, with about 12 million
tons produced domestically, making
the country pretty self-reliant when it
comes to synthetic nitrogen.
" California is sort of the inverse of
that because we are a coastal region, "
said Nicoletti. " We actually import
more than half a million tons a year
when our consumption in California is
three-quarters of a million tons. "
It's a large disparity when most of
California's UAN32 is imported, but less
than a fifth is for the rest of the country.
Part of this has to do with the
current discussion surrounding unique
regulations discussing anti-dumping
and countervailing duties.
Russia has been a large supplier of
UAN32 to the U.S., particularly to
California. The U.S. Department of
Commerce found that Russian imports
of UAN are sold at less than fair value
into the U.S. at rates ranging from 9.15%
to 127.19%, and imports from Trinidad
and Tobago at rates over 63%. Because
of this, the Department of Commerce
will impose cash deposit requirements
on UAN imports from these countries.
It's possible this might create a
self-fulfilling prophecy of driving
fertilizer costs even higher. The
anticipation of tariff announcements
has UAN32 importers uneasy about
committing to a price when nobody
knows what the additional costs will
be. The months-ahead planning that
usually takes place can't happen.
" An importer can get upside down
on that trade very quickly, depending
on how punitive those tariffs are, " said
Nicoletti. " And what will ultimately

March/April 2022

Table of Contents for the Digital Edition of March/April 2022

March/April 2022 - 1
March/April 2022 - 2
March/April 2022 - 3
March/April 2022 - 4
March/April 2022 - 5
March/April 2022 - 6
March/April 2022 - 7
March/April 2022 - 8
March/April 2022 - 9
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https://www.nxtbook.com/greatamericanmediaservices/NNG/may-june-2024
https://www.nxtbook.com/greatamericanmediaservices/NNG/march-april-2024
https://www.nxtbook.com/greatamericanmediaservices/NNG/january-february-2024
https://www.nxtbook.com/greatamericanmediaservices/NNG/november-december-2023
https://www.nxtbook.com/greatamericanmediaservices/NNG/september-october-2023
https://www.nxtbook.com/greatamericanmediaservices/NNG/july-august-2023
https://www.nxtbook.com/greatamericanmediaservices/NNG/may-june-2023
https://www.nxtbook.com/greatamericanmediaservices/NNG/march-april-2023
https://www.nxtbook.com/greatamericanmediaservices/NNG/january-february-2023
https://www.nxtbook.com/greatamericanmediaservices/NNG/november-december-2022
https://www.nxtbook.com/greatamericanmediaservices/NNG/september-october-2022
https://www.nxtbook.com/greatamericanmediaservices/NNG/july-august-2022
https://www.nxtbook.com/greatamericanmediaservices/NNG/may-june-2022
https://www.nxtbook.com/greatamericanmediaservices/NNG/march-april-2022
https://www.nxtbook.com/greatamericanmediaservices/NNG/january-february-2022
https://www.nxtbook.com/greatamericanmediaservices/NNG/winter-2022
https://www.nxtbook.com/greatamericanmediaservices/NNG/fall-2021
https://www.nxtbook.com/greatamericanmediaservices/NNG/summer-2021
https://www.nxtbook.com/greatamericanmediaservices/NNG/winter-2021
https://www.nxtbookmedia.com