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Fertilisers play a significant role for food security. Their production and their cost largely depend on natural gas. Following Russia's invasion of Ukraine, a global mineral fertiliser and energy crisis is now weighing on global food security and food prices. In this context, the European Commission presented a Communication on ensuring availability and affordability of fertilisers.
Actions to maintain a sustainable EU fertilisers' production and reduce dependencies
The Communication outlines several best practices and ways ahead to help farmers optimise their fertiliser use and reduce their dependencies while securing yields, among which:
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More organic fertilisers: The substitution, whenever possible, of mineral fertilisers by organic fertilisers will reduce EU's dependence on gas as well as the carbon footprint of the sector. The Fertilising Products Regulation already ensures a better access in the market to fertilisers made from recovered waste and green and circular alternatives to natural gas. Horizon Europe has also invested €180 million in projects on optimisation of nutrient budget, alternative fertilising products and nature-based solutions for nutrient management. The Commission will also adopt in 2023 an Integrated Nutrient Management Action Plan to foster a more efficient use of nutrients, taking into account Member States' starting points and the Zero Pollution Action Plan.
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Transition to greener fertilisers: The Commission will encourage Member States to support investments in renewable hydrogen and biomethane for ammonia production.
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Trade diversification: The Commission has reached out to alternative suppliers of fertilisers to compensate for previous supplies from Belarus and Russia. The Commission also proposed in July 2022 to suspend trade tariffs for ammonia and urea, used to produce nitrogen fertilisers.
Background
Russia's illegal invasion of Ukraine has worsened an already challenging situation for the fertiliser market, on the heels of the COVID-19 pandemic. The production of nitrogen fertilisers depends on natural gas. The peak in gas price led to a 149% price rise of fertilisers in September 2022 compared with the year before. As a result, farmers have been delaying and reducing their purchases of these products. This could lead to lower yields for next year's harvest, and ultimately to higher food prices, with potentially devastating effects on food security, especially in vulnerable regions of the world that are highly dependent on import of such products and with already high levels of food insecurity.
High and unstable fertiliser prices are challenging for EU farmers. Purchases of fertilisers represent around 6% on average of the share of input costs and up to 12% for arable crop farmers. The objective of the EU's Farm to-Fork strategy is to reduce nutrient losses by 50% by 2030 while preserving soil fertility. In addition to leading to clear economic and environmental benefits, efficiencies in the EU will reduce tensions in the global market too.
November 9, 2022/ EC/ European Union.
https://ec.europa.eu/commission
