Farmers distressed over fertilizer prices

High fertilizer prices reduced profits and Central Highlands farmers also face difficulties in reinvesting in crops

Farmers in the Central Highlands face many difficulties with high fertilizer prices. Photo: Tuan Anh.

Reluctant to purchase expensive ferilizers

Recently, fertilizer prices in Gia Lai province continued to increase sharply. From the beginning of October, prices of urea, DAP and potassium increased by 1,000,000 - 1,500,000 VND/ton.

Reported at Dai Lam agricultural fertilizer agents (Yen The ward, Pleiku city, Gia Lai province), fertilizers such as NPK, potassium, DAP... increased by an average of 30% compared to about 1 month ago. Specifically, fertilizers (50kg) cost less than 600,000 VND previously, but now it has increased to more than 700 thousand VND.

Mr. Nguyen Van Phong, owner of Dai Lam agricultural fertilizer agent, said that at the beginning of the year, a single bag of potassium fertilizer was about 400,000 VND, now it is more than 700,000 VND. Fertilizer prices are increasing steadily, with no sign of halting. Only around August, fertilizer prices decreased slightly but rose sharply immediately after.

According to Mr. Phong, some crops such as coffee, fruit trees are currently out of season, so many agents in Gia Lai also stopped importing goods to wait for lowered fertilizer prices.

"At this time, fertilizer prices are, if goods are imported when the season comes and the fertilizer prices drop, it will be difficult for agents to sell," said Mr. Phong.

Recently, Mr. Nguyen Van Long (Binh Giao commune, Chu Prong district, Gia Lai province) are distraught when fertilizer prices skyrocketed.

Mr. Long's family has 4 hectares of coffee, pepper and fruit trees. On average, every quarter, Mr. Long has to buy assorted fertilizers for about VND 50-60 million. With the current high price, Mr. Long loses about 50 million VND a year.

“Currently, coffee and fruit trees prices are decreasing, this is my family's main income. Now that fertilizer prices have gone up, it's no longer profitable this year" said Mr. Long.

Nguyen Huy Hung, Deputy Director of Gia Lai Agricultural Biological Joint Stock Company, said that the company has over 10 hectares of passion fruit plantations in Ia Nhin commune, Chu Pah district, Gia Lai province. Currently, with passion fruits recently harvested, now is the time to fertilize to increase nutrition for the tree. If in July, NPK bags (50kg) cost 620,000 VND, it has increased to over 700,000 VND currently.

“On average, once every 20 days, passion fruit trees need to be fertilized once. Previously, we bought more than 50 bags of NPK (50kg) for more than 27 million VND. With the current high price of fertilizer, the company has to spend over 6 million VND for 1 fertilizer application. Thus, on average, the company loses about 80 million dong a year, profit is greatly reduced" said Mr. Hung.

According to Mr. Hung, many households around the area mainly grow passion fruit, so use of fertilizer is high. Although the price has increased, but fertilizer is still sold out and people find it very difficult to purchase.

Difficulties in reinvestment

Recently, fertilizer prices have continuously increased, making it difficult for people in Dak Lak to invest in crops.

Mr. Nguyen Thanh Phu (Krong Buk district, Dak Lak) said that his family has over 1.5 hectares of durian harvested a month ago. This year, due to the impact of Covid-19, prices of agricultural products dropped.

However, to restore durian trees after harvest, the family had to spend over 15 million VND to buy NPK and phosphate fertilizer for the plants. In which, NPK is priced at over 700,000 VND/bag and phosphorus at nearly 200,000 VND/bag.

“Every year, the family only needs to spend about 10 million dong to afford fertilizer for durians after harvest. The current price of manure is constantly increasing, making it difficult for people," said Mr. Phu.

According to Mr. Phu, fertilizer prices have increased, but people still have to afford it. "If you don't apply enough durian fertilizer, young leaves will be lowered the following year, the yield will be less," added Mr. Phu.

Similarly, Mr. Tran Thanh Binh (Cu M'gar district, Dak Lak) has spent nearly 10 million VND to buy fertilizer for nearly 1 ha of durian.

According to Mr. Binh, after harvest, it is necessary to fertilize and spray for the tree to recover. However, the prices of fertilizers and pesticides are increasing, making it difficult for farmers to reinvest.

“Every year, the high prices of agricultural products, plus the low prices of fertilizers and pesticides, makes investment profitable. This year durian prices are havled, while fertilizer prices increased by more than 40%, leading to an increase in investment costs. We hope that the authorities will soon have a solution to curb the prices so that farmers can reinvest this year," Mr. Binh said.

Dr. Phan Viet Ha, Deputy Director of the Western Highlands Agro-Forestry Science and Technology Institute, said that it is currently the rainy season in the Central Highlands, so all crops require fertilizer to grow.

In which, for coffee, pepper, farmers start to fertilize from September to October to increase the grain's weight. As for harvested fruit trees, this is the time to fertilize to produce new leaves.

According to Dr. Ha, the increase in fertilizer prices leads to lower fertilizer application. As a result, the output and quality of agricultural products will be lower in the next harvest.

"For fruit trees, if there isn't enough fertilizer, they won't grow 2-3 layers of new leaves. If so, crop production next year will be affected . People need to utilize all kinds of organic fertilizers for plants. Maybe organic fertilizer is unsuitable for plants immediately, but in the long run, it will be promising,” said Dr. Ha.

According to Mr. Ha, in addition, farmers can increase foliar application to reduce the amount of fertilizer while still ensuring good growth and development of trees.

“Applying fertilizer on leaves will increase labor but reduce the cost to buy fertilizer. And fertilizing under the root will reduce labor and increase the cost. In this case, farmers should increase foliar fertilization to reduce the cost of buying fertilizers," said Deputy Director of the Western Highlands Agro-Forestry Science and Technology Institute.

On average, 1 hectare uses 10 million VND of fertilizer extra

In Kon Tum, recently, members of Sau Nhung Agriculture, Production and Trading Cooperative (Dak Ha district) also had to reluctantly purchase NPK at over 3 million VND/ton compared to 1 month ago.

Mr. Nguyen Tri Sau, Director of Sau Nhung Cooperative, said that last month, NPK price was at 1.2 million VND/quintal, currently it has increased to nearly 1.5 million VND.

“A few days ago, more than 10 members of the cooperative bought 20 tons of NPK for 1,446 million VND. Compared to the previous month, members have lost 60 million dong," said Mr. Sau.

According to Mr. Sau, the increased fertilizer prices caused great damage to the people. For households that do not use organic fertilizers, on average, they have to fertilize 6 times a year, equivalent to about 3.5 tons/ha. With the current price of fertilizer at over 300,000 VND/quintal, farmers have to spend over 10 million VND a year. With cheap coffee prices like last year, people lose the equivalent of about 2 tons of fresh coffee, which is no longer profitable.

According to Mr. Sau, although this is the end of the crop, coffee trees need a lot of fertilizer in the winter to help the fruits be firmer. Additionally, fertilizing at this time will provide coffee with nutrients, then winter break until watering time (about January 2022) to fertilize again.