Prices of nitrogen fertilizers. The EC is starting an investigation!

As is well known, the prices of fertilizers, including nitrogen fertilizers, have drastically increased in recent months. This is becoming more and more of concern to farmers, for whom fertilizers are one of the important means of agricultural production. The rising prices of fertilizers were also highlighted by the European Commission, which launched an investigation into import duties on UAN fertilizers.

Prices broke the record this winter and the situation is getting tougher at farm level – Copa Cogeca information in its press release. Accordingly, the European Commission has announced the initiation of an investigation into the import duties on UAN fertilizers, or UAN.

High prices of nitrogen fertilizers pose a threat to production

According to information from Copa-Cogeca, nitrogen fertilizer prices have tripled since the beginning of 2021. In addition, the supply of fertilizers in the off-season was lower than before, therefore distributors do not know whether the farmers’ demand will be fully met by spring.

According to Copa – Cogeca, any further development of this negative situation may pose a threat to agricultural production.

These conditions enormously threaten the productive capacity of cultivating farmers, who face both the volatility of the international crop market and distortions of competition with farmers around the world due to an overly protected European fertilizer market – reports Copa Cogeca.

Fertilizer prices 2021. Anti-dumping duties are a major obstacle for farmers

High prices of nitrogen fertilizers are observed especially in the case of urea ammonium nitrate solution (UAN). It is related to the world gas demand and prices for sea transport. It is also influenced by insufficient competition in the EU internal market. As reported by Copa-Cogeca, it is the anti-dumping duties on UAN fertilizers that are among the main obstacles for farmers. At the same time, they exposed producers to excessive charges and a serious risk of supply shortages.

At the same time, however, the fertilizer market in the EU experienced high production costs, sales prices were also reaching excessive profit margins.

Therefore, as reported by Copa – Cogeca, the European Commission has decided to open an investigation into import duties which also affect the prices of nitrogen fertilizers.

Copa-Cogeca is pleased that the investigation has been launched. Vice-president Tim Cullinan, on the other hand, hopes that the EC’s investigation will be completed before the price of nitrogen fertilizers goes even higher:

– This is the first step. The Commission decided to listen to comments from the farming community about the over-protection of the fertilizer market. Action must be taken quickly as UAN prices are above € 750 / this situation is tense in some Member States. We therefore hope that the investigation launched by the European Commission will be completed within a timeframe that takes into account the critical situation of farms.

Read also: The fertilizer market in Poland in 2021 Fertilizer prices are stabilizing?

Source: Copa – Cogeca

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About Eric Wilson

The variety offered by video games never ceases to amaze him. He loves OutRun's drifting as well as the contemplative walks of Dear Esther. Immersing himself in other worlds is an incomparable feeling for him: he understood it by playing for the first time in Shenmue.

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