Farmers are seeing a €100/t differential in fertiliser prices in the same county this week between a smaller scale merchant and a co-op, a farm organisation has warned.
According to the Irish Cattle and Sheep Farmers’ Association (ICSA), there continues to be a “considerable variation in prices” between various suppliers across the country.
The ICSA has also warned that one key factor which continues to dominate price differentials in relation to fertiliser is location.
“The much cheaper fertiliser in Northern Ireland has been a key factor in driving significant price differences between border counties and southern counties.
“The difference has been striking with Munster farmers paying more than €100/t more, on average, than farmers near the border where importing fertiliser is more feasible and cost effective,” the ICSA highlighted to the Joint Oireachtas Committee on Agriculture, Food and the Marine this week.
The organisation said that it believes that farmers are trying to get fertiliser from Northern Ireland because for most of 2023 “there has been a disparity of €200-300/t”.
According to the Irish Creamery Milk Suppliers’ Association (ICMSA)meanwhile, there now needs to be “an immediate and through investigation” by the Competition and Consumer Protection Commission (CCPC) into fertiliser prices in Ireland.
The ICMSA also told the joint committee that based on feedback from its members “the further south you go in Ireland, the more expensive fertiliser becomes quite obviously linked to the availability of fertiliser from Northern Ireland”.
“Recent quotes in the midlands include: €560/t for CAN, €780/t for 10-10-20 and €750/t for 24-2.5-10. In the south-west, farmers are being quoted €640/t for CAN, €760/t for urea and €780/t for 18-6-12.
“Merchants in the south-east of the country are quoting €730/t for urea, €730/t for 24-2.5-10 and over €700/t for 18-6-12,” the ICMSA highlighted.
It also issued a stark warning to TDs and senators that although farmers are receiving less for their products in 2023, they are still “paying an unacceptably high price for fertiliser which should be decreasing along with the European gas price”.
The Irish Natura and Hill Farmers’ Association (INHFA) also told the oireachtas committee that it was concerned that there could be knock-on effect from some farmers who may have delayed applying fertiliser in the hope that prices would fall.
It fears this could “could undermine forage yields” and have a knock-on effect into next year.
“As fertiliser is a critical component of Irish agriculture we must have trust between the fertiliser companies, the suppliers, co-ops, merchants and farmers.
“Unfortunately, farmers are not too trusting at this point and for good reason. The view amongst most farmers is that a high level of profit has been made by other players at their expense,” the INHFA told the committee.