Dáil debates

Tuesday, 21 February 2023

Ceisteanna ó Cheannairí - Leaders' Questions

 

2:45 pm

Photo of Danny Healy-RaeDanny Healy-Rae (Kerry, Independent) | Oireachtas source

I wish to bring to the Taoiseach's attention the crisis with the price of fertilisers and what is happening with farming in Ireland today. This is the second year that Irish farmers will have to pay unrealistic, exorbitant, over-the-top prices for fertilisers. In recent weeks Germany, other European countries and the UK are paying 40% less than our farmers for fertilisers. They pay €500 a tonne for urea while Irish farmers are paying €850 to €900. I thought when we went into the European Common Market in 1973 that all EU countries would have a level playing field especially with prices for goods and supplies. It has become very clear that we do not have enough competition in the fertiliser market.

This problem began in October and November 2021, months before the Ukraine war. Prices began to soar and after Christmas but still before the war, prices increased further. Some of the co-ops would not even quote farmers. Last March, Kerry farmers could not get fertiliser for almost two weeks as it was being held up by the distributors and co-ops so that they could increase the price further. It is absolutely ridiculous that many co-ops will not quote farmers today for the price per tonne for fertiliser. They will provide it to the farmers and send the bill later. It is very clear that the fertiliser distributors and suppliers are profiteering at the expense of our farmers. The profits of Yara, one of the fertiliser suppliers, increased by 60% between September and December last year. Mosaic, one of the leading producers, doubled its profits in the same period. The whole thing is rotten with farmers suffering and households crippled with increased food costs.

Before the increases, urea started out at €380 a tonne in 2021. Last year it was a €1,000 a tonne and it is still €900 a tonne now.

The fertiliser companies blame the war and claim that the increased cost of gas is the reason for the increase in production costs. There has been a constant reduction in the price of natural gas – up to 85% - since last September. We should be seeing a major reduction in the cost of fertiliser.

It is becoming clear that we do not have proper competition in the fertiliser market, with Goulding, IFI, Grassland and Yara operating together. I am calling for a high-powered investigation at national and European levels into what is happening. What is the Competition and Consumer Protection Commission, CCPC, for? Is it a charade? Is it being paid for nothing? It is not helping Irish farmers or Irish consumers in how it is letting this situation go unattended.

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