EU: IFA fertilizer report calls for price-fixing investigation

The reports suggests that “price fixing and cartels might be operating in highly concentrated markets such as western Europe”.

An investigation into Europe’s fertiliser industry has found that existing trade barriers are costing European farmers nearly €1bn in import duties and that over 17,000 jobs could be created in the agri-food sector if the sector functioned better.

The report was commissioned by the IFA from the Washington-based International Food Policy Research Institute as part of its strategy to reduce input costs for Irish farmers.

According to the independent research institute, “a review of literature shows that prices of fertilisers in Western European countries increased by 123% between 1970 and 2002, while prices in other countries like Brazil decreased by 65%; it also shows that increased concentration is correlated with higher prices or, alternatively, more competition is associated with lower prices”.

After a thorough analysis of the sector and, the experts conclude: “The fertiliser market in the European Union is relatively concentrated and consequently, fertiliser prices are relatively high. This may be, at least partly, the result of a protectionist trade policy which benefits the European fertilizer sector to the detriment of the agricultural sector which use fertilisers as an input.”

Full Content: Agriland

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