Olwyn Enright (Laois-Offaly, Fine Gael)
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Question 71: To ask the Minister for Agriculture, Fisheries and Food if her attention has been drawn to the financial difficulty facing farmers in view of the recent escalation in fertiliser costs; and if she will make a statement on the matter. [13046/08]

Trevor Sargent (Dublin North, Green Party)
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Changes in fertiliser costs, in common with all elements of intermediate consumption for farmers, are principally a function of market forces, in this instance primarily at international level. The main reason for the sharp increase in fertiliser prices this year is the fact that world demand far outstrips supply. Increased world demand is such that fertiliser plants do not have the productive capacity necessary to respond. Increasing use of fertiliser is a prerequisite for improving the demand-supply balance of food worldwide and also for increasing crop production for energy and biofuel. The most significant component of increased demand for fertiliser for food production is coming from expanding economies such as India and China, while increased demand from South America and Canada is for biofuel production. Russia and America, previously exporters of fertiliser, are retaining their own production this year.

Other factors leading to increased costs for fertiliser worldwide are the increasing price of oil, which is a major contributor to the overall cost of fertiliser production, and increased shipping costs worldwide due to high economic global activity in areas such as China and India, which is leading to a deficit in shipping capacity. Within the EU, the decision to return former set-aside land to crop production has also contributed to increasing demand for fertiliser.

Since the closure of IFI in 2002, Ireland has had no indigenous inorganic fertiliser production and as such is totally dependent on imports. Furthermore, Ireland's location on the fringe of Europe implies increased shipping costs and a lack of economies of scale in the area of shipping. One option for Irish farmers is to use imported inorganic fertiliser for crop production as efficiently as possible, having regard to good agricultural and environmental practices at all times. Organic fertilisers produced on farms, such as slurry and farmyard manure, have now become even more valuable as sources of nutrients for crop growth and should be used as efficiently as possible.

Brendan Howlin (Wexford, Labour)
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There are several Deputies who wish to ask questions.

Trevor Sargent (Dublin North, Green Party)
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There is more but I cannot read it all now.

Brendan Howlin (Wexford, Labour)
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I remind Deputies that the Minister has two minutes, as all the Department officials will know.

Trevor Sargent (Dublin North, Green Party)
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The Leas-Cheann Comhairle normally states that the balance of the reply will appear in the Official Report.

Brendan Howlin (Wexford, Labour)
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It will, but I did not want to eat up the time by saying so.

Trevor Sargent (Dublin North, Green Party)
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That is what I was waiting to hear.

Brendan Howlin (Wexford, Labour)
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The balance of the Minister of State's reply will appear in the Official Report.

Trevor Sargent (Dublin North, Green Party)
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I thank the Leas-Cheann Comhairle.

John Browne (Wexford, Fianna Fail)
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He is a very tough lad.

Michael Creed (Cork North West, Fine Gael)
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The Minister of State will be acutely aware of the problem of greenhouse gas emissions from chemical fertilisers, particularly nitrous oxide, which is one of the most potent greenhouse gases. Would the Minister consider the undertaking by his Department, in conjunction with bodies such as Teagasc and experts in the industry, of a review of the nitrates directive? Organic nitrogen has an advantage in terms of locking carbon into the soil. Without compromising water quality, will the Minister of State undertake a review of the nitrates directive so we might switch from organic to inorganic nitrogen sources?

Trevor Sargent (Dublin North, Green Party)
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I have asked that question myself and the answer I have been given by people who are in the business of studying these matters scientifically is that the application of slurry outside the allowed times would not be beneficial in that it would be going onto ground which essentially is not for growing and would not improve the growth of crops. There is a need to examine the science behind it as well as simply looking for a way of getting rid of something which is valuable. Given the increase in fertiliser costs, the options for farmers need to be more widely considered than even my reply envisages. In other words, the uptake of organic farming becomes more attractive as the inputs for non-organic methods increase. Therefore, we need to examine the bigger picture, which is something farmers will be doing in any event.

David Stanton (Cork East, Fine Gael)
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Is there a danger that availability could be an issue? The Minister of State said there are major issues concerning the importation and exportation of fertiliser. In hindsight, was it a mistake to close IFI?

Andrew Doyle (Wicklow, Fine Gael)
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Of course it was.

Trevor Sargent (Dublin North, Green Party)
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This question will require a far broader view than simply asking what Ireland can do. Ireland still had to import gas and fossil fuels to operate IFI, so there was no great merit in simply locking ourselves into that dependency. We need to look at global food production, which will require further evaluation of other methods. I am currently reading a lot of material on climate change, nutrient use and sustainability, which indicates that more organic production methods are inevitable. It is not an option or a lifestyle choice because in future we will not have the fossil fuel that underpins the current agricultural system.

Seán Sherlock (Cork East, Labour)
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I suppose the Minister of State's next press release will be expounding the virtues of organic manure.

Mary Coughlan (Donegal South West, Fianna Fail)
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Not a bad one. Does the Deputy have a shovel?

Seán Sherlock (Cork East, Labour)
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The chickens are coming home to roost following the loss of IFI, which has resulted in increasing costs for importing fertiliser. We do not know the exact content of fertilisers imported from third countries because there is no policing of urea and other contents. The Department should put in place some policing mechanism to ensure the content is what it says on the tin. This has permutations for growers and crop production generally.

Brendan Howlin (Wexford, Labour)
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I suspect Deputy Doyle has a similar question.

Andrew Doyle (Wicklow, Fine Gael)
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I was interested to hear that the Minister of State is studying various papers but we are an island nation. A couple of years ago, I conducted some research on the use of marinure.

Brendan Howlin (Wexford, Labour)
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I am sure there is a question coming.

Andrew Doyle (Wicklow, Fine Gael)
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There is.

Michael Creed (Cork North West, Fine Gael)
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We just have to wait for it.

Andrew Doyle (Wicklow, Fine Gael)
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Perhaps the Minister of State could include marinure, which is seaweed fertiliser, in his study documents as it might kill many birds with the one stone. Instead of continuously talking about organic farming, we might use the term traditional farming more often because it is far more practical and workable in the long run. Organic fertiliser is not actually organic according to the Minister of State's terminology.

Trevor Sargent (Dublin North, Green Party)
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I am quite happy to talk about traditional agriculture but organic agriculture as it is now practised takes on board traditional agriculture with the research that is being carried out for the efficient use of resources. The use of seaweed in my constituency of Dublin North is the bedrock of the horticultural industry there, so to that extent I am very familiar with the potential of maritime resources. In addition to the horticultural sector, seaweed has also been widely used scientifically on many golf courses.

Andrew Doyle (Wicklow, Fine Gael)
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There is no food in golf courses.

Trevor Sargent (Dublin North, Green Party)
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I am not going to make any puns about the greens. As regards Deputy Sherlock's point, there are standards for imported fertilisers. The manufacturers are required to indicate on the bag the actual components. If the Deputy has any evidence of sharp practice or shortcuts in this regard, he should bring it to my attention. I am sure Teagasc would be keen to hear more about that.

Seán Sherlock (Cork East, Labour)
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What about third countries?