Fertiliser industry under the spotlight at IFA conference

Since 2005, total expenditure on farming inputs has increased more than 50%, from €3.7bn to €5.7bn, now soaking up more than over 70% of the farm-gate value of output, said IFA President Eddie Downey last week.

He said, “Fertiliser, as the second biggest expenditure on farms, has seen prices increase by over 75% during the same period, to over €600m in 2014. Meanwhile, farm incomes over the same period have fallen by more than 20%.

He was announcing details of a major conference to be hosted by IFA next week, at which market concentration among the major fertiliser manufacturers, and mechanisms to restore competition in the market, will be examined by key international speakers.

Mr Downey blamed consolidation of the fertiliser industry for eliminating effective competition in the market, and hitting farm incomes and the wider agri-industry.

He said the changed support environment for farmers under the reformed Common Agricultural Policy has brought the impact that input costs have on margins into much sharper focus.

“Changes to EU regulations are needed to address market concentration and the unbalanced power held by a small number of multinational input suppliers.

“The Government and agri-food industry must engage with the EU Commission to tackle the major cartels controlling, in particular, the supply and price of fertiliser.

“The EU’s DG Competition must examine why there is a disparity on fertiliser pricing.”

He welcomed EU Agriculture Commissioner Phil Hogan’s commitment to raise competition in the fertiliser sector with EU Commissioner for Competition, Margrethe Vestager. “Ammonia used to produce urea and nitrates is particularly energy dependent, and natural gas accounts for over 75% of ammonia production costs,” said the IFA President.

“Despite a 30% plus fall in the average wholesale gas price for 2014, European nitrogen manufacturers increased wholesale CAN and urea prices by 5% to 10%.”

According to IFA, the international fertiliser conference will be of interest to farmers, agri-merchants, co-ops and suppliers, in addition to food and drinks manufacturers and processors and EU and Government policy makers.

The conference will take place in the Heritage Hotel, Killenard, Portlaoise on April 30, commencing at 4.30pm.

Full details are available at the www.ifa.ie website.

Registration is free to IFA members (to reserve a place, contact [e-mail] or call 01-4260336 by Thursday, April 23.