Helen McEntee (Meath East, Fine Gael)
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26. To ask the Minister for Agriculture, Food and the Marine in view of the high cost of fertilisers for farmers; the global structure of the fertilisers manufacturing industry; if he will update Dáil Éireann on his efforts at the European Council of Ministers to ensure a concerted approach by the European Union in tackling fertiliser prices; his discussions with the European Commissioner for Agriculture and Rural Development, Mr. Phil Hogan, regarding this matter; and if he will make a statement on the matter. [34091/15]

Simon Coveney (Cork South Central, Fine Gael)
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No fertilisers are now manufactured in Ireland, resulting in indigenous fertiliser companies being price-takers, dependent on global supply and demand and subject to Euro exchange rates against the US dollar and other currencies. Nitrogen, in the form of Calcium Ammonium Nitrate (CAN), Phosphorous and Potash constitute the vast majority of fertiliser nutrients used in Ireland and since all fertiliser used in Ireland is imported, Irish fertiliser companies have little control over the price at which they buy their products on the global market.

On-farm prices range from €330 to €450 /tonne depending on type and nutrient content. Fertiliser costs are among the highest input costs in Irish agriculture at 20% on average and can amount to double this for certain tillage crops.

Currently, Europe is only 80% self-sufficient in fertiliser production and must import 20% of its requirements. As such, European and Irish fertiliser prices are strongly linked to global prices and heavily influenced by supply and demand. With global demand outstripping supply, Irish fertiliser prices have increased by 6-8% so far in 2015. It is anticipated that world demand will continue to increase into the future maintaining upward pressure on prices to the final consumer in Ireland.

The advice from Teagasc is for farmers to keep in contact with merchants as prices often spike at periods of high demand when European order books are full. Purchasing fertilisers at off-peak periods will help minimise prices. Teagasc further advises that finding alternative sources of major nutrients will save money and farmers should consider the use of slurry applications to minimise expenditure on chemical fertilisers. In addition, soil testing will prevent unnecessary applications.