Dáil Éireann Debate, Tuesday - 27 June 2023
506. Deputy Peadar Tóibín asked the Minister for Agriculture, Food and the Marine if his Department has conducted any analysis of the percentage increase in the cost of farm fertiliser in each of the past 24 months; and if so, if he can provide the figures to this Deputy. [30888/23]
View answerMy Department has no function in terms of fertiliser prices, beyond the regulatory function of ensuring fertiliser products placed on the market are in keeping with the regulatory framework. However I have continued to monitor the market situation given the negative impact that high fertiliser prices have had on farmers’ expenditure and profitability.
Figures from Eurostat suggest that fertiliser, energy and feed accounted for 55% of farm input costs in 2022, up from 43% in 2020. In addition, fertiliser prices peaked in April 2022, up 178% in the year. This is corroborated by the CSO Agricultural Price Index. However, the CSO index shows that overall fertiliser prices have reduced 28.1% for the year April 2022 to April 2023 (the latest index available) with a 14.1% reduction occurring in March 2023.
Accordingly, the rise in fertiliser prices over the past 18 months has been significant. Whilst prices have moderated somewhat from their peak of last year, they still remain elevated.
There are a number of factors at play in the market including energy prices, increased global demand particularly from the big grain-producing countries, controls on fertiliser exports from large fertiliser producing countries, increased transport costs, EU-imposed tariffs and duties on certain Third Country imports and the impact of the sanctions regime arising from the illegal invasion of Ukraine by Russia, all of which have impacted on fertiliser prices for our farmers.
You will be aware that there are no fertilisers manufactured in Ireland. Irish fertiliser companies blend a number of imported fertiliser products into different compositions suitable for agricultural use in Ireland. As a result, indigenous fertiliser companies are price-takers, dependent on global supply and demand and subject to Euro exchange rates against the US dollar and other currencies on the price they pay for fertiliser.
To support farmers in terms of advice, I established the National Fodder and Food Security Committee and over the course of the past year, instigated a series of targeted interventions for farmers, including those for the tillage sector and a multi-species sward initiative, as well as Fodder Support Schemes to support farmers dealing with the impacts on the supply chain.
We continue to actively engage with the sector and monitor the situation over the period ahead. I will continue to support our farm families and their businesses in the time ahead.
