The Competition and Consumer Protection Commission (CCPC) has been asked to investigate Ireland’s fertiliser market by the Beef Plan Movement (BPM).
According to John Moloney, BPM’s vice-chair, chemical fertiliser is “an essential input for farmers in all sectors of food production”.
“Over the past year the price of inputs has increased exponentially. This has placed a great deal of stress on many farmers as they have seen their margins diminished.”
“This spring, the cost of fertiliser has decreased in many countries around the world. We have seen prices in the UK and Northern Ireland drop well below the prices available here in the Republic,” Moloney added.
He said that urea can be bought in Northern Ireland “for €250/tonne cheaper than South of the border”.
According to Moloney there is “little competition in the Republic of Ireland as prices amongst all the major suppliers remain at an exorbitant level”.
BPM has highlighted that its members can see “little justification” for the current north, south price differential in relation to fertilisers.
Moloney added:“ We believe the CCPC should investigate the supply and sale of fertiliser in the Republic of Ireland.
“We also believe there is a high risk that suppliers are profiteering by keeping prices artificially high at a time of year when there is peak demand for fertiliser.
“Such actions have the effect of increasing our cost of production and diminishing our returns.”
Moloney has acknowledged that some fertiliser suppliers have stated that when they purchased their supplies fertiliser was at higher prices.
However this claim is disputed by the BPM.
“It seems improbable that all merchants would have made this mistake.
“Therefore, we believe the lack of competition between these merchants on pricing could indicate a form of price fixing is taking place where the suppliers are uniformly selling well above the market value,” Moloney claimed.
BPM said that consumers should be made aware that high fertiliser prices will “inevitably” have a knock on effect on them as they will “end up paying more for their food”.
Moloney added:
“If there is evidence of price fixing between fertiliser suppliers then this only serves to maximise their own profit margins.
“This is very damaging for both primary producers and consumers.”
BPM has requested that the CCPC “ensures that all parties in the food supply chain act in an honest and transparent manner”.
He said that fundamentally a “properly functioning supply chain is essential for food security”.
The decision taken by BPM to contact the CCPC comes at a time when there is ongoing pressure for the government to appoint a new food regulator.