Suspension of customs duties on imported fertilisers, use of manure, reduction of dependence on third countries: members of the European Parliament’s Committee on Agriculture asked the European Commission on Wednesday 20 April to take measures to help farmers cope with the 40% rise in fertiliser prices since the start of the war in Ukraine triggered by Russia.
Herbert Dorfmann (EPP, Italy) denounced “absurd” prices for fertilisers and said that the cause should be attributed mainly to the failure of the market. “Oligopolies are used to the detriment of EU farmers and fertiliser companies have made huge profits”, he criticised. He asked the Commission to carry out investigations to verify compliance with the competition rules.
Clara Aguilera (S&D, Spain), like others, spoke of the EU’s over-dependence on certain third countries. “We need to act, because if the situation continues, we risk having a supply problem” of fertiliser in Europe and constraints on the use of manure as fertiliser should be lifted, Mrs Aguilera said.
Martin Hlaváček (Renew Europe, Czech Republic) also believes that the use of organic substances should be allowed.
Martin Häusling (Greens/EFA, Germany) said that the main thing was to “force the transition” to a world less dependent on fossil fuels and to develop leguminous plantations and the use of organic fertilisers.
Anne Sander (EPP, France) advocated two types of measures: the temporary suspension of customs duties on imported fertilisers and joint purchases of inputs by farmers.
The Deputy Director General of DG Agriculture, Michael Scannell, noted in particular the “encouraging sign” of the increase in cereal harvests in the EU and recalled the 500 million euros envelope to help EU farmers cope with, among other things, the increase in fertiliser prices as well as the new framework on State aid.
Organic fertilisers and reduced dependence on fossil fertilisers. The Commission also intends to encourage better use of organic fertilisers and “we will see how to use livestock effluents and manure in a more sustainable way while respecting environmental standards. We are also looking at ways to reduce our dependence on fossil fertilisers”, Mr Scannell said. Hydrogen could be an interesting alternative to fossil fuels.
The fertiliser sector is highly segmented. The potash sector is owned by some large countries (Russia and Belarus). “We are not producing enough potassium-based fertiliser”, the Commission representative acknowledged. The same applies to phosphorus-based fertilisers (a market dominated by China and Canada). “We import a lot of ammonia to produce our fertiliser. If we find distortions of competition, we will intervene”, the Commission promised.
The Commission is currently working on anti-dumping duties. “The evaluation is ongoing, but it will not fundamentally change the situation”, the institution warned.
EU Agriculture Ministers also expressed concern in early April about rising input prices, including fertiliser (see EUROPE 12929/13). (Original version in French by Lionel Changeur)