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Supply Chain Blues

4/21/2022 - By Lynn Griffith

Supply Chain Blues

We are all singing them. Many nursery growers have been forced to change their potting mixes due to problems with the availability of ingredients. Fertilizer prices are skyrocketing, and access to certain components is inconsistent. Fertilizer formulations in use for years suddenly are unavailable. What is going on? Well, number one, it’s wartime. There is, of course, no war here in the USA (yet), but in this increasingly smaller world, conflict in one part of the planet can have echoing effects globally.

Let’s take fertilizer. Historically, the most economical form of synthetic nitrogen is urea. Not only for golf course greens but nurseries, cow pastures, and various types of animal feeds, and the list goes on. It is only possible to have high nitrogen fertilizer analyses by including urea in the formulation. How is urea made?

Anhydrous ammonia is combined with carbon dioxide and heated to 350°. It takes a great deal of natural gas to heat such a mixture in large volumes. I have seen diesel fuel over six dollars per gallon. Yes, it costs more to transport everything by truck and ship these days, so that is part of the problem. But the energy cost to create fertilizer, let alone transport it, has become outlandish. Nitrogen costs affect most of what we eat.

Supply Chain Blues

Urea has traditionally sold for roughly $300 per ton in the last few years. It is now running more than three times that, and at times has been even higher. Global instability may affect the availability and pricing of phosphate and potash. Spring planting in some parts of the world has been delayed or canceled altogether, potentially affecting the food supply. Micronutrient costs have also skyrocketed, and availability can be inconsistent.

So, what can we do in these trying times? We get creative. I see this with Harrell’s sales reps all over the country. They communicate with customers in an honest and forthright manner about supply chain, pricing, and delivery issues. They find ways to make substitutions to keep products as consistent as possible for their clients. Some of these adjustments are quite clever.

Of course, nobody likes price increases or availability hiccups, but (as difficult as they are) we understand why they are coming around. These are not normal times. Everybody knows that. What works best in terms of maintaining relationships between customers, reps, and everyone in between, is consistent communication and letting everyone know that you’re on their side and are doing everything you possibly can to minimize disruption. Together, we can and will find a way!

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In addition to being the nation’s largest distributor of branded fungicides, herbicides, and insecticides, Harrell’s produces custom-blended fertilizers, specialty liquids, and wetting agents. Additionally, Harrell’s is the exclusive US owner, formulator, and distributor of all POLYON® branded products.

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