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Nitrates Usage

Dáil Éireann Debate, Tuesday - 2 November 2021

Tuesday, 2 November 2021

Ceisteanna (1253)

Richard O'Donoghue

Ceist:

1253. Deputy Richard O'Donoghue asked the Minister for Agriculture, Food and the Marine the reason there is a ban on protected urea coming in from Russia (details supplied). [53217/21]

Amharc ar fhreagra

Freagraí scríofa

Fertiliser is a significant cost on most farms and is indeed experiencing a rise in prices.

The fertiliser market is largely driven by global supply and demand and a number of factors have been major driving factors for price increases including rising global demand due to strong growth in agricultural commodity prices and rising production costs due to increased raw material and energy costs.

In particular, increasing gas prices, which is a key input into nitrogen fertiliser production, is having a significant impact on prices in recent months, with some European nitrogen producers scaling back production or halting operations. Gas prices are expected to remain strong into next year and is likely to see high fertiliser prices.

There are no fertilisers manufactured in Ireland, rather fertiliser companies blend a number of imported fertiliser products into different compositions suitable for agricultural use in Ireland. Indigenous fertiliser companies are 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.

Russia is an important global player in the production of fertiliser and accounted for over 20% of fertiliser imports into Ireland in 2020. There is no ban on protected urea from Russia. However, urea is a product that is traded globally where its availability and price are subject to global market conditions.

The European Commission is following the situation in relation to fertiliser price increases very closely and is of the view that increased costs must be shared by all participants in the food chain. They are also working on a toolbox which is hoped will help Member States put measures in place to deal with the current situation.

The Department will continue to closely monitor how the fertiliser market develops in the weeks and months ahead.

I have asked Teagasc to put forward a roadmap for farmers to reduce the use of chemical fertilisers on farms. This will assist farmers in responding to the climate challenge to reduce the environmental footprint of the agriculture sector as well as making economic sense.

Furthermore, as part of the recent Budget, I announced a new €1 million initiative to support the planting of multi-species swards in order to reduce dependence on fertilisers. This scheme will support farmers to use multi species grass when reseeding. It will mean a mixture of complementary species will be sown, including clover, which will enable farmers to reduce their use of nitrogen.

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