Attack on ‘monopoly’ in the fertiliser market

EVEN if fertiliser prices have slipped back a little in recent weeks, there are still strong feelings in the UK and EU farming industry that the main manufacturing companies could do with more competition.

Last month, NFU Scotland president Nigel Miller wrote to the competition authorities in the UK asking that they look at the terms of the deal that saw the biggest supplier in the world, Yara, take over 50 per cent ownership of the Kemira Growhow business

And yesterday George Lyon MEP called on the European Commission to take tough action against the huge concentration of power in the fertiliser market.

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Lyon pointed out that, between 2003 and 2009 when farmers’ output prices increased by 35 per cent, farm input prices rose by 42 per cent. But he added that, in the same period, fertiliser prices rose by 173 per cent.

“Growhow is now a monopoly manufacturer for nitrogen fertiliser in the UK. Not only does it control the compound fertiliser market but the only competition it faces is from the blenders and they too are reliant on Growhow for their supply of nitrogen.

“I called on the commission to carry out a thorough investigation of the fertiliser market. If they identify abuse by the dominant player then they must take tough action.”

The issue was also raised by Alyn Smith MEP who contrasted the action taken against any farming organisation where monopolistic tendencies might exist with the lack of action against the major companies involved in fertilisers, feeds and other farm inputs.

But Ken Bowler, marketing manager for Growhow, rejected the politicians’ stance, describing the fertiliser market as being “extremely competitive”.

The UK market was very small on the world stage and prices were often set as a result of shifts in supply and demand in the US or the Far East, he said.

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