Dáil Éireann Debate, Thursday - 14 February 2019
203. Deputy Charlie McConalogue asked the Minister for Agriculture, Food and the Marine if he has had discussions at EU level recently with regard to reducing the price of fertiliser costs for farmers, including wholesale CAN prices; the status of the investigation of the European Commission into the margins enjoyed by EU fertiliser manufacturers; and when the results of the investigation will be finalised. [7636/19]
View answerI am very conscious that fertiliser is a major input cost for Irish farmers. Currently, there is no manufacturing of fertilisers in Ireland, resulting in indigenous fertiliser companies being price takers, dependent on global supply and demand, and subject to Euro exchange rates against the US dollar and other currencies. Fertilisers are mainly traded in US Dollars and are thereby subject to fluctuations in currency exchange rates.
The Central Statistics Office (CSO) monitors the price of fertilisers on a monthly basis. My Department receives data on the type and quantity of fertilisers and lime sold on a quarterly basis from Industry. The Central Statistics Office's 2018 Preliminary estimates of Output, Input and Income in Agriculture identifies an increase in volume of 7.3% combined with a price increase of fertilisers consumed on Irish farms. This resulted in an increase of €59.7m in overall expenditure on fertilisers, to a total of €572.7m in 2018.
I have long believed that the elimination of fertiliser tariffs and anti-dumping duties is something that could help farmers reduce their input costs. I have raised this issue at the Agri Fish Council since 2016, both with the Commission and in consultation with my Council colleagues. At the Agri Fish Council in June 2017, I asked the Commission to address the significant overpricing of fertilisers in the EU brought about by the imposition of anti-dumping duties on imports.
In that context, the Commission undertook a study of the anti-dumping levy imposed on ammonium nitrate fertiliser imported from Russia during 2017 and 2018. This study was supported by a number of European farming organisations, including the IFA.
The Commission Implementing Regulation (EU) 2018/1722 of 14 November 2018 outlines the findings of this review. A total elimination of the levy was not supported in the findings. The decision was taken to reduce the levy by just over 30%. The reduction in levies applies to products with more than 28% ammonium nitrate. In Ireland the level of ammonium nitrate is restricted to a nitrogen level of less than 28% and is used in the form of calcium ammonium nitrate (CAN). While this product is not directly affected by the levy, changes in the price of ammonium nitrate may impact the price of CAN.
