Friday’s Insider: Organic or not organic? That is the question!

Last month, the European Commission proposed tariffs on Russian fertilizer imports. However, some member states are reluctant to support them, as farmers would have to pay more for alternative supplies.

At the same time, this is part of the Commission’s long-term strategy (2040 and beyond) to achieve greater strategic autonomy in certain critical areas essential for food production and security.

I love numbers. They usually don’t lie.

The Commission’s Vision for Agriculture paper, published on Wednesday, states that it would be a ‘win-win’ for the environment and climate ‘through the support for the uptake of low-carbon fertilizers and recycled nutrients, such as ReNure and digestate after appropriate treatment, and their efficient use.’

So, this famous ReNure (Recovered Nitrogen from Manure) fertilizer—is it really that good? Open sources indicate that the nitrogen content in ReNure fertilizers varies depending on the processing method and the raw manure used. Generally, it contains between 3% and 7% total nitrogen, and the estimated price of ReNure is expected to be €100 to €200 per metric tonne delivered—really cheap! However, let’s look at the numbers, as they normally don’t lie.

I’ll use some very average and rather high prices for ReNure’s rivals, such as:

• Urea (46% N): €500–600 per metric tonne
• CAN (27% N): €300–400 per metric tonne
• UAN (32% N): €400–500 per metric tonne

The cost per kilogram of nitrogen in this case is:

• Urea – €1.09–1.30
• CAN – €1.11–1.48
• UAN – €1.25–1.56
• ReNure – €1.42–3.33

Doesn’t seem so cheap anymore. On top of that, a low nitrogen concentration means farmers need to apply higher volumes, increasing transport and spreading costs. Storage requirements are also greater than for chemical fertilizers.

We haven’t even started talking about the investment in processing plants needed to standardize quality and supply.

That said, it’s good that at least some progress has been made towards standardized organic fertilizers. I’m happy to see this happening. ReNure has its advantages as well. Since 70%–85% of its nitrogen is in ammonium form, it is readily available but may require multiple applications to match crop demand. It works well for both pre-planting and top-dressing applications, though volatilization risks must be managed (as with liquid ammonium fertilizers).

I believe that both organic and chemical fertilizers can and should be used together. I just don’t like it when society is misled by the false claim that organic fertilizers can fully replace synthetic ones.

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About the Author of “Friday’s Insider”: Ilya Motorygin is the co-founder of GG-Trading and brings 30 years of experience to the fertilizer industry. Renowned for his comprehensive problem-solving skills, Ilya expertly manages deals from inception to completion, overseeing aspects such as financing, supply chains, and logistics.