The difference in fertiliser prices between here and Northern Ireland could cost farmers €250 million this year, according to analysis from the Irish Farmers’ Association (IFA).
The association called on co-ops and merchants to immediately reduce fertiliser prices for farmers.
According to the IFA there is a difference of up to €200/t in some products between the Republic of Ireland and Northern Ireland.
The price of fertiliser has dropped by over 40% to farmers in markets such as the UK and Germany, but the IFA said that there has been very little movement in price in Ireland.
The cost of EU gas, a key component in fertiliser production, has fallen from a high of €340/Mega Watt hour (MWh) in late-August 2022 to under €50/MWh at end of February 2023.
As part of the IFA campaign on the price differential on both sides of the border, fertiliser from Northern Ireland is being delivered to farmers in Co. Wexford today (Tuesday, March 14).
The IFA said that the product will be distributed to farmers from a farmyard in Enniscorthy.
IFA president Tim Cullinan said that the cost of this order of calcium ammonium nitrate (CAN), if purchased locally, would have been nearly 30% higher, based on recent quotes.
“It’s unacceptable for co-ops and merchants to keep fertiliser prices at inflated levels. There is no justification for this price differential as all the fertiliser used on the island is coming from the same sources.
“There was huge frustration at our national council meeting last week. Farmers need fertiliser and they feel they are being held over a barrel by the fertiliser industry,” he said.
IFA National Grain Committee chair Kieran McEvoy said that windfall profits of up to €250/t were made on fertiliser last year.
“Farmers cannot afford for this to happen again this year. Fertiliser prices internationally have fallen massively over the last couple of months but Irish farmers are not benefitting.
“The tillage sector, in particular, is a priority as farmers are buying fertiliser and spreading for their 2023 crops at the moment,” he said.
IFA Farm Business chair Rose Mary McDonagh added: “While the tillage sector is being hit with these exorbitant prices at this moment, many beef, sheep and dairy farmers will be looking to purchase fertiliser in the next two weeks for grazing and silage.
“With margins looking very tight in these sectors for 2023, it is vital that all farmers see the large price reductions passed back immediately,” she said.