Shipping duty investigation on fertilizers

– The European Commission is finally starting an investigation into the import duties on UAN (UAN) fertilizers, according to a press release from the agricultural organizations Copa and Cogeca.

As noted, Copa and Cogeca have questioned the usefulness of the anti-dumping measures on UAN (UAN) fertilizers at European level in recent months.

High fertilizer prices

– Prices have broken the record and the situation is becoming more and more difficult at farm level. DG Trade decided to open an investigation into the real impact of anti-dumping measures. Copa and Cogeca welcome these first steps, which could lead to the lifting of anti-dumping duties, and ask the European Commission to act swiftly, it said.

We would like to remind you that, as we reported on the portal, fertilizer prices, especially since July, have risen drastically. Especially the prices of nitrogen fertilizers, there was also a problem with their availability.

Fertilizer prices are rising.  There are problems with their availability

Fertilizers became more expensive

– Since the beginning of 2021, nitrogen fertilizer prices have tripled. Currently, they constitute 55 percent. production costs for farmers growing in Europe. In addition to this increase, supply in the off-season has been lower than usual and distributors are already unsure whether they will be able to meet farmers’ demand in many Member States by spring. These conditions put a huge threat to the production capacity of crop farmers, who face both the instability of the international crop market and the distortion of competition with farmers around the world due to the overly protected European fertilizer market, reported Copa and Cogeca.

Fertilizer prices, especially urea ammonium nitrate solution (UAN), are related to the growing global gas demand and prices for sea transport, as well as insufficient competition on the EU internal market.

Customs barriers for fertilizers

– Often the public is unaware that nitrogen fertilizer tariffs and anti-dumping duties imposed on UAN at EU level have become a major obstacle for farmers and have exposed them to overcharges and a serious risk of supply shortages. At the same time, the European fertilizer industry, which has experienced high production costs and selling prices, continues to achieve excessive profit margins, we read.

– 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, commented Tim Cullinan, Copa Vice-President, on the launch of an investigation by the European Commission on import barriers protecting the fertilizer sector.

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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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