No shortage of fertilizer despite IFI closure
IFI declined to discuss the issue or the share of the market it holds in the Republic, while the IFA said it was disappointed that events had forced the company’s liquidation.
An IFA spokesman said competition was needed in this sector.
IFA would be increasingly vigilant to ensure competition for fertiliser on the Irish market, he said.
Main players in the industry are the IAWS owned Gouldings, the McDonogh owned Albatros business, and the Freshgrass owned Grassland business (formerly Greencore). Glanbia also have a fertiliser business, Grassland Kilkenny, which is smaller than the other three. Kemira, the giant Finnish business, already have an operation in Belfast.
The European fertiliser market has been oversupplied for years.
Capacity for up to six million tonnes of fertiliser has been taken out in the recent past, with all the main players closing down operations. Efforts are being made by the EU to curtail imports of cheap fertiliser from Russia and eastern Europe, by imposing import tariffs.
It is estimated that there is a surplus of around 1.5 million tonnes in Europe at present.
Ironically, that is the estimated annual production of IFI.
The decision by IFI to recommend the appointment of a liquidator followed the refusal of the two shareholders, the Dublin government (51%) and British chemical giant ICI (49%), to put extra money into the loss making company.
Around 200 jobs will go at the Richardson plant in Belfast, where the issue has created a storm for Northern Secretary of State Dr John Reid. Reports from Belfast said the company would continue to trade for a few weeks while it was winding down its operations.
