The fertiliser industry is seeking support from the Government and the EU to share the financial risk of securing fertiliser supplies this winter.
A report commissioned by the Irish Fertiliser Manufacturers and Blenders Association proposes that the EU and Irish Government provide incentives for farmers to purchase and take deliveries of fertiliser three to six months earlier than normal.
The confidential report, which has been sent to the Department of Agriculture and has been seen by the Irish Farmers Journal, said that urgent action is needed to support the importation of product given the current surge in fertiliser prices internationally and the continuing market unpredictability.
“Given the present price volatility, fertiliser importers do not have the financial capacity to shoulder the level of risk associated with the purchase of up to 500,000t of fertiliser between now and 31 December, plus an additional 500,000t up to the end of the spring season,” the report stated.
“The industry can only operate within reasonable commercial risk limits. Without some form of risk mitigation measures, the industry will not succeed in importing sufficient tonnage to satisfy demand,” it added.
Impact on growing
Industry sources have suggested that fertiliser imports are running at around 50% of normal levels.
The industry report warned that a failure to import sufficient fertiliser stocks would result in a severe shortfall of N, P and K in the growing season of 2023, which had the potential to translate into a significant fodder shortage.
“The EU, government and the fertiliser industry should, however, explore the opportunity to share financial risk across the supply and distribution chain, for example by creating incentives for farmers to purchase and take deliveries three to six months earlier than normal,” the report maintained.
Climate action
The report accepted that any policy to support the fertiliser market will need to be consistent with the Climate Action Plan.
It therefore stated that any intervention by Government should be “narrowly targeted, contingent and temporary, and contain no element of permanent subsidy”.
The fertiliser industry also called for greater clarity around the operation of the Russian sanctions and a “thoroughly worked-out plan to avert a fodder shortage” next year.
SHARING OPTIONS: