Fertiliser price fix ‘scandal’ faces EU scrutiny
GALWAY IFA representatives are calling for ‘immediate action’ to correct the ‘imbalance’ in fertiliser prices across the EU and Ireland caused mainly by the imposition of tariffs on Russian imports.
With dairy and grain farmers looking set to face a tough year on the prices front, a reduction in the fertiliser input cost would be a major help in balancing the books at the end of the year.
Galway IFA Environment Representative Bertie Roche said that the scandal of excessive fertiliser prices in Ireland had to be addressed as a matter of urgency.
“The tariff on Russian imports alone could mean a difference of around €50 per tonne to farmers here in the West of Ireland – that is just a cost factor that has to be addressed,” said Bertie Roche.
He said that the fertiliser price situation was further exacerbated by the fact that there were only two production facilities across the EU while further hikes were being imposed by Irish distributors.
“We are facing into a very difficult year in the dairy sector with ongoing downward pressure on prices while grain farmers are also looking at a tough year ahead on the price front.
“At least if there was a noticeable cut in the price of fertiliser – which we now firmly believe is entirely achievable – it would be a help to hard-pressed farmers,” said Bertie Roche.
According to the findings of a report commissioned by the IFA, the International Food Policy Research Institute (IFPRI) found that existing trade barriers are costing European farmers nearly €1 billion in import duties.
The IFPRI report was presented to the EU Commission by the IFA this week and states that the complete removal of all duties from fertiliser would be a beneficial reform for the European economy.
Galway IFA Rural Development Representative, Eamonn Burke told the Farming Tribune that the new report would now provide the necessary information to bring about a change in the overall EU policy on fertiliser prices and import tariffs.
“It is quite clear that the leeway is there to bring about a significant reduction in the price that Irish farmers are paying for fertilisers. It is unacceptable that farmers are being saddled with the tariff charges on fertilisers,” said Eamonn Burke.
Ammonium nitrates imports from Russia are being ‘hit’ with are called ‘anti-dumping tariffs’ of €47 per tonne. Import duties on nitrogen and phosphate imports to the EU work out at between €15 and €25 per tonne.