Holly Cairns
Question:1588. Deputy Holly Cairns asked the Minister for Agriculture, Food and the Marine his response to the increases in fertiliser prices. [42770/21]
View answerThursday, 9 September 2021
Questions (1588)
Written answers
I am aware that fertiliser is a huge cost on most farms. There has been a sharp increase in fertiliser prices since the start of this year. The fertiliser market is largely driven by global supply and demand and, while there are a number of factors influencing fertiliser price, the major driving factors for the current increase in prices are increased global demand driven by strong growth in agricultural commodity prices, rising production costs due to increased raw material and energy costs, and issues with supply for certain fertiliser products.
No fertilisers are manufactured 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.
Many farmers purchased their fertiliser earlier this year compared to previous years and were not exposed to recent price increases. However, it is expected that farmers will experience the full effect of higher fertiliser prices for the coming season. Fertiliser prices are projected to remain robust into next year as production is increased in response to rising global demand coupled with higher costs of production. As a key input in the food production system, the Department will be closely monitoring how the fertiliser market develops in the months ahead.