Farming
Riddle of urea price now goes to EU DG
THE early signs seem to indicate an increase in fertiliser price this year despite the fact that fuel – one of the big costs in the manufacture of nitrogen – has fallen by over 30% in recent months.
Now the IFA have called on the EU Commission to investigate ‘what’s going on’ in relation to fertiliser prices for the coming year in Ireland with estimates of increases of between 3% and 7%.
IFA Inputs Project Team Leader, James McCarthy, said that ammonia used to produce urea and CAN, was highly energy dependent – so when fuel costs dropped, so also should the cost of the end product.
“The transformation of atmospheric nitrogen into ammonia is energy intensive. International studies have shown that natural gas accounts for 72%-85% of ammonia production costs.
“Average wholesale gas prices for 2014 fell in excess of 30%. Paradoxically wholesale CAN (calcium ammonium nitrate) and urea prices are bucking this trend. Instead of decreasing, wholesale CAN prices are up 4% on 2014 and forecast to go up a further 3%,” said James McCarthy.
Galway IFA Environmental Representative Bertie Roche told the Farming Tribune that the early indications from the merchants was that there would be an increase in fertiliser prices this year.
“It does seem hard to fathom out that fertiliser prices can increase at a time when the cost of making the product has dropped significantly. We are trying to find out what’s going on and the matter is being pursued at EU Commission level,” said Bertie Roche.
He added that some of the merchants had told him that the strength of the US dollar against the euro was a factor in the likelihood of a price increase this year.
“It’s difficult to know what to advise. Some farmers are buying in small amounts of urea but the cuts in energy costs don’t seem to be translating into any reduction in fertiliser prices. The early indications seem to suggest a price increase, possibly up to 7%,” said Bertie Roche.
James McCarthy said it was clear that changes to EU regulations were needed to address market concentration and the unbalanced power held by a small number of multi-national input suppliers
“The Irish Government and agri-food industry must engage with the EU Commission to tackle the major cartels controlling, in particular, the supply and price of fertiliser,” he said.
Mr. McCarthy added that he welcomed the commitment of Commissioner Phil Hogan to raise the fertiliser price disparity issue with his colleague, the Competition Commissioner, Margrethe Vestager.
“It is paramount that any activities by manufacturers which potentially breach competition are investigated by DG Competition,” he said.
GARDAÍ and the IFA have issued a joint appeal to all road users to take extra care as the silage season gets under way across the country.
Silage harvesting started in many parts of Galway last week – and over the coming month, the sight of tractors and trailers on rural roads will be getting far more frequent.
Inspector Conor Madden, who is in charge of Galway Roads Policing, told the Farming Tribune that a bit of extra care and common-sense from all road users would go a long way towards preventing serious collisions on roads this summer.
“One thing I would ask farmers and contractors to consider is to try and get more experienced drivers working for them.
“Tractors have got faster and bigger – and they are also towing heavy loads of silage – so care and experience are a great help in terms of accident prevention,” Inspector Madden told the Farming Tribune.
He said that tractor drivers should always be aware of traffic building up behind them and to pull in and let these vehicles pass, where it was safe to do so.
“By the same token, other road users should always exercise extra care; drive that bit slower; and ‘pull in’ that bit more, when meeting tractors and heavy machinery.
“We all want to see everyone enjoying a safe summer on our roads – that extra bit of care, and consideration for other roads users can make a huge difference,” said Conor Madden.
He also advised motorists and tractor drivers to be acutely aware of pedestrians and cyclists on the roads during the summer season when more people would be out walking and cycling on the roads.
The IFA has also joined in on the road safety appeal with Galway IFA Farm Family and Social Affairs Chair Teresa Roche asking all road users to exercise that extra bit of care and caution.
“We are renewing our annual appeal for motorists to be on the look out for tractors, trailers and other agricultural machinery exiting from fields and farmyards,” she said.
For more, read this week’s Connacht Tribune.
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MINISTER for Agriculture, Charlie McConalogue, has been asked to review a decision taken over recent weeks to exclude the sheep farming sector from the Brexit Adjustment Reserve (BAR).
East Galway Independent TD, Seán Canney, has called on the Agriculture Minister and Government to ‘revisit’ the issue of sheep farmers and the BAR fund.
Galway IFA Chair, Stephen Canavan, also said that a mistake had been made in terms of excluding the sheep sector from the BAR funding.
“I think that there is no doubt whatsoever that Brexit had a major impact in terms of New Zealand lamb exports flooding the UK market.
“The knock-on affect of that on Irish sheep farmers was a serious fall-back on lamb and hogget prices through the early months of this year.
“There are now serious concerns that the farmers who buy in store lambs through the early autumn period will just pull out of this market after getting such a scalding over the past six months or so,” said Stephen Canavan.
According to Deputy Seán Canney, all of the Regional Group of TDs are backing the move to get the Government to have another look at the use of the BAR fund for the sheep sector.
“The evidence that sheep farming was affected by Brexit is strong and the decision not to support people in this sector needs to be reversed immediately.
“Brexit negotiations began in June 2016 and caused turmoil in the sheep trade as it weakened the currency making UK lamb far more competitive.
“The notion or threat of ‘a no deal ‘ in Brexit caused the price of sheep to fluctuate repeatedly in the trade and resulted in lambs selling for an estimated €30-€50 lower per head each year during the entire Brexit process,” said Deputy Canney.
WITH the exception of Leitrim, Galway was marginally the cheapest county in the west and north-west to buy non-residential farmland during the course of 2022, according to the latest national survey of prices.
The survey showed that the average price of an acre of ‘good land’ in Galway last year, for holdings under 50-acres, was €9,500 – the dearest was Donegal at €12,143 while the cheapest was Leitrim at €6,140 an acre.
Jointly researched by Society of Chartered Surveyors Ireland (SCCI) and Teagasc, the survey also indicated that only 0.5% of land in Ireland goes up for sale each year, a major factor in terms of demand for leased land.
‘Good land’ in Mayo [under 50-acres] averaged out at €10,092; the figure for Roscommon was €9,938; with Sligo coming in at €9,550.
When it came to a comparison of poorer quality land in Connacht [under 50-acres], Mayo was the cheapest at €2,886 followed by Leitrim on €3,300 while Galway topped ‘poor land price league’ at €5,375 per acre.
Auctioneer Martin O’Connor of DNG O’Connor, Oughterard, said that the market was being driven by dairy farmers ‘who are continually ranked throughout the survey as the most likely purchasers of land across the country’.
He said that changes in the European Nitrates Directive in relation to improving water quality meant that many dairy farmers needed more land to comply with this directive.
“In order to maintain current levels of milk production – and to comply with the directive – many dairy farms will need to either increase their land area or reduce milk production.
For more, read this week’s Connacht Tribune.
Connacht Tribune Digital Edition App
Download the Connacht Tribune Digital Edition App to access to Galway’s best-selling newspaper.
Click HERE to download it for iPhone and iPad from Apple’s App Store, or HERE to get the Android Version from Google Play.
Or purchase the Digital Edition for PC, Mac or Laptop from Pagesuite HERE.
Get the Connacht Tribune Live app
The Connacht Tribune Live app is the home of everything that is happening in Galway City and county. It’s completely FREE and features all the latest news, sport and information on what’s on in your area. Click HERE to download it for iPhone and iPad from Apple’s App Store, or HERE to get the Android Version from Google Play.
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