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The EU Commission has cut duties on Russian ammonium nitrate by one third, raising the prospect of more competition in supply of nitrogen fertilisers and downward pressure on prices.
The decision follows the Commission’s two-year review of the anti-dumping duties, made at the request of the IFA and other EU farm organisations. The duties have been in place for decades.
Change
The change, confirmed this week in the Official Journal of the European Union, sees duties cut from €47/t to €32/t for most grades of ammonium nitrate.
The reduction equates to €12/t on CAN, according to the IFA.
This would protect farmers and help restore incomes and competitiveness
“Irish fertiliser suppliers must reflect this reduction in CAN prices to the trade,” IFA Munster chair John Coughlan said.
He also called for a change in how fertiliser prices are quoted to farmers.
“Many merchants complain that they can’t obtain quotes from importers or blenders. That needs to change.
"Irish merchants should move to quoting for fertiliser on a 24/7 basis, reflecting the way business is done from manufacturers to blenders and distributors.”
2019 review
The EU Commission will carry out a periodic review of its anti-dumping duties on Russian ammonium nitrate in 2019.
IFA president Joe Healy said that the Commission should introduce a minimum import price system.
“This would protect farmers and help restore incomes and competitiveness. Some EU manufacturers have become accustomed to double-digit profit margins due to the protection afforded by EU anti-dumping duties and customs tariff.”
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