The European Commission is due to adopt a communication on 9 November outlining a number of initiatives to ensure the availability and accessibility of fertilisers in the context of the Russian-induced war in Ukraine.
To counteract the negative effects of the war on fertiliser prices and supply in the EU, the Commission suggests several measures, according to a draft communication of 21 October seen by EUROPE (see EUROPE 13044/11).
The Commission calls on EU Member States to ensure “the continued and undisrupted” access to natural gas for fertiliser producers in the event of gas rationing through their national emergency plans.
Furthermore, EU Member States are invited to use the amended ‘crisis framework’ on State aid to “support farmers and fertiliser producers relying on, inter alia, funds generated by Union initiatives such as the windfall and solidarity levies or the cohesion and recovery funds”.
Agricultural aid. The Commission will examine, together with the Member States, the expediency of further exceptional support measures, financed by the agricultural crisis reserve. It will pay particular attention to farmers’ use of the interventions that Member States have programmed in their strategic plans implementing the Common Agricultural Policy (CAP) in the area of sustainable fertiliser use.
Member States are asked to revise their ‘CAP strategic plans’ to include incentives for farmers to use fertilisers more efficiently using a variety of tools: nutrient management plans, precision farming, organic farming, agro-ecology, the use of leguminous crops in rotation plans and advice and training on nutrient management and ‘ecoschemes’ to promote organic fertilisers. “The Commission will swiftly approve such amendments to the strategic plans”, according to the draft communication.
The Commission is committed to taking action to improve the transparency of the fertiliser market through the creation of a new fertiliser market observatory.
Strategic autonomy. To reduce the EU’s dependence on third-country products, the Commission wants to promote actions to ensure strategic autonomy in terms of fertilisers. It cites, for example, measures for better access to organic fertilisers and nutrients from recycled waste streams and support for the conversion of the European nitrogen fertiliser industry to green ammonia.
At international level, the Commission will continue and reinforce its contribution to the four strands of the EU’s global food security response, cooperate with selected EU partner countries to reduce their dependence on mineral fertiliser imports, raise the availability and affordability of fertilisers in bilateral and multilateral fora and contribute to relevant international initiatives, including the G20 Agricultural Market Information System (AMIS) for fertilisers and the Global Fertiliser Challenge.
The communication does not contain any new information on the request to lift anti-dumping duties on fertilisers imported from third countries.
Industry disappointed? The European fertiliser industry has more than 120 production sites spread over most Member States. According to the Commission, it employed 61,000 people in 2017 and had an average turnover of €23.3 billion in 2017-2019.
Fertilizers Europe told EUROPE on Thursday 3 November that “the European fertiliser industry welcomes the fact that the Commission will present a communication on fertilisers on 9 November. However, we believe that the current circumstances require more than just a communication addressing the current market difficulties. In fact, to preserve the food security that EU has so long enjoyed, and the importance of which is becoming clearer these days, the EU needs to prepare a long-term fertiliser strategy”.
Link to the draft communication: https://aeur.eu/f/3w7 (Original version in French by Lionel Changeur)