Farmers require fertilizer cartel after the price increase

  • Farmers require fertilizer cartel after the price increase
    FarmIreland.t. E.
    The increase in fertilizer prices announced last week, the world’s leading manufacturer of Yara was slammed as “unjustified” by using ELISA.
    https://www.independent.ie/business/farming/agri-business/farmers-call-for-probe-into-fertiliser-cartel-after-price-hike-37256669.html
    https://www.independent.ie/business/farming/article36727583.ece/6e76b/AUTOCROP/h342/Depositphotos_5184626_m-2015.jpg

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The increase in fertilizer prices announced last week, the world’s leading manufacturer of Yara was slammed as “unjustified” by using ELISA.

Yara has increased the Wholesale price can €18/t to €233/t, which is from €170/t this time last year.

If the last price increase to spend, maybe the price will jump from the current farm gate value delivered €240/t to €260/t.

John Coughlan IFA project team inputs, said there was no economic justification for price increases, given that the main input cost, natural gas, remains stable.

“Significant and unjustified price increases clearly demonstrate that the domestic fertilizer market, the EU is dysfunctional, with Irish and EU farmers are forced to pay the highest fertilizer prices in the world,” said Mr. Coughlan.

“Maintaining anti-dumping measures in respect of ammonium nitrate, in addition to customs duties on EU imports of fertilizer crisis hinder real competition. This is clearly evidenced by the recent increase in prices.


John Coughlan

“Large producers, the EU is abusing its dominant position by tight control of prices and supply. They show contempt and a total lack of respect to their customers farmer.”

IFA argued that the imposition of duties and tariffs Commission allows manufacturers of fertilisers of the EU to command a significant premium over world prices, especially for nitrogen.

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“The Commission needs to take immediate action and cancel the anti-dumping measures along with the suspension of customs duties on EU imports of fertilizer,” said Coughlan said.

“In addition, DG competition should now begin the investigation of possible operation of price cartels in the fertilizer market of the EU.”

At the foot of the complaint ELISA and seven other agricultural organizations in the EU, the EU Commission launched an investigation into the profitability of the fertilizer manufacturers, the EU arising from the protection of anti-dumping measures.

Under this test the Commission DG team trade investigations held a series of visits in the spring of this year in Russia and EU manufacturing sites fertilizers. The announcement of the results of this investigation is inevitable.

“There is an expectation of increased demand for nitrogen products in the United States and South America on the back of improved corn and grain prices this harvest, and that was the main reason for the recent rise in price,” Irish said an industry source.

Meanwhile, the demand for fertilizer this month was double the normal level, traders report. This is due to increased use on livestock farms.

Traders predict that traditional supply reduction on fertilizers is unlikely to be available to farmers this fall as a result of increased sales.

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