Dáil debates

Tuesday, 15 February 2022

Saincheisteanna Tráthúla - Topical Issue Debate

Farm Costs

9:15 pm

Photo of Pippa HackettPippa Hackett (Green Party) | Oireachtas source

I am here on behalf of the Minister, Deputy McConalogue, who is away at the moment. I thank the Deputies for raising this important matter. The very significant rise in fertiliser prices in the last year, and particularly in recent months, is concerning and my Department is closely monitoring the situation. While there are a number of factors at play in the market, there is no sign of fertiliser prices easing in the short to medium term. There are no fertilisers manufactured in Ireland. Rather, fertiliser companies blend a number of imported fertiliser products into different compositions suitable for agricultural use in Ireland. Indigenous fertiliser companies are dependent on global supply and demand and are subject to euro exchange rates against the US dollar and other currencies on the price they pay for fertiliser. The well-publicised rise in gas prices, which is a key input in nitrogen fertiliser production, has contributed significantly to the upward trend in fertiliser prices. Furthermore, an exacerbating factor is the increased demand for fertiliser from large grain-producing countries, which is being fuelled by strong global grain markets. This increased global demand has impacted on supplies and added to upward pressure on prices. The imposition of anti-dumping tariffs from certain third countries is, of course, an additional, albeit secondary, factor when fertiliser is imported into the EU from these producing countries. It is clear that there has been a confluence of issues over the past 12 months or so, all having an upward effect on global fertiliser prices. Energy prices remain well above January 2021 levels and transport costs have also added to price increases.

In October 2021, the Minister for Agriculture, Food and the Marine requested that Teagasc lay out a credible roadmap to assist farmers in the short term, as well as offering a long-term solution in the move to reduce dependence on chemical fertiliser. The Soils, Nutrients and Fertiliser Campaign was launched on 26 January. Teagasc has put together a comprehensive information pack for farmers and their advisers through a compendium of 20 fact sheets, to optimise the use of plant nutrients and to help farmers address the challenge of maintaining-----

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