The Irish Farmers’ Association (IFA) is calling on merchants and co-ops to pass on significant reductions in global fertiliser prices to farmers.
Tim Cullinan, the association’s president, said this evening (Thursday, February 16): “We have seen a sustained, significant drop in the price of natural gas of up to 85% since September 2022. The spike in natural gas prices was referenced as the main driver of increased fertiliser prices last year.
“Therefore, we should now be seeing a significant reduction in fertiliser prices in line with what is happening with gas. But that’s not happening,” Cullinan added.
“If we look at our neighbours in the UK, the price of granulated urea to farmers has decreased by over 40% since last September. Similar decreases are being seen in most other markets, with the exception of here in Ireland.”
The IFA president said that production of fertiliser is now returning to normal levels in Europe after widespread curtailments last year.
According to Cullinan, this means that prices will continue to decrease.
The graph below – produced by the IFA and compiled by data from the Central Statistics Office (CSO); the UK’s Agriculture and Horticulture Development Board (AHDB); and the Chicago Board of Trade in the US – shows that Irish fertiliser prices (in green) have remained at high levels while prices in the UK (blue) and the US (red) have been decreasing since last year.
Cullinan commented: “It is time to stop the profiteering and reduce prices for farmers. Fertiliser companies made huge profits due to rising markets in 2022. They need to lead the price down in 2023 instead of looking for another windfall.”
He added: “Many sectors of Irish agriculture struggled in 2022 with the cost of inputs. We cannot let this happen again in 2023, especially seeing as, internationally, the price of these inputs has fallen significantly.
“A large cost on many farms is fertiliser, with much of this being bought in the spring. Therefore, I cam calling on all co-ops and merchants to step up and pass on these price reductions immediately,” Cullinan commented.