There has been much criticism regarding the European Commission’s response to the crisis facing the fertiliser market. According to Copa Cogeca, the EU’s response “lacks concrete short-term actions”. With the Russian invasion of Ukraine, the group says markets have now been disrupted.
Representing millions of European farmers, the group comments that “besides the energy and agricultural commodities that have been widely analysed and commented on, there is another market where the war is impacting European agriculture, namely fertilisers.”
The effects of the crisis have “a cumulative effect on farmers” according to the group. Copa Cogeca stated that the EU wholesale price for nitrogen solution has seen a 250% rise from January 2021 to February 2022. Copa vice-president, Tim Cullinan says “despite the troubled market, EU growers have been able to source most of the fertilisers needed for this cropping season. However, the extra price we had to pay was not offset by the moderate grain price increase experienced since mid-2021.”
Since the Russian invasion on 24 February, fertiliser markets are witnessing a new crisis in the form of a supply shock this time, according to Copa. But European authorities have been proactive when it comes to the crisis affecting the energy and grain market.
“So far however, Europe has fallen short of addressing the surge in EU fertiliser prices and the risk of fertiliser shortages, which essentially concern urea, nitrogen solutions, phosphates, and potash,” Cullinan continued.