Fertilisers

Department for Environment, Food and Rural Affairs written question – answered at on 22 June 2022.

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Photo of Mark Pritchard Mark Pritchard Conservative, The Wrekin

To ask the Secretary of State for Environment, Food and Rural Affairs, when he expects his working group on fertilisers to report; what assessment he has made of the impact of rises in fertiliser prices on farmers in Shropshire; and if he will make a statement.

Photo of Jo Churchill Jo Churchill The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs

On 31 March Minister Prentis hosted the first meeting of the Fertiliser Taskforce with key industry bodies to discuss potential mitigations to the challenges which global supply pressures are causing. On 18 May I hosted the second Taskforce meeting. Ministers will continue to meet with key industry bodies for further Fertiliser Taskforce sessions in the coming months, to help identify and mitigate potential risks. Defra fertiliser blogs on gov.uk from 30 March and 11 May have reported on the Fertiliser Taskforce meetings.

Global gas prices have impacted production of fertilisers internationally and domestically. Some international companies halted or reduced production, and some countries such as China reduced the export of some fertiliser products to protect their domestic demands. However, supply of all fertilisers in the UK has remained available throughout the last 12 months although high prices reduced demand from farmers.

While global fertiliser prices have risen, the supply chain providing imports of fertiliser to the UK has remained dynamic. CF Fertilisers continues to produce ammonium nitrate fertiliser from its plant at Billingham.

Government actions, such as bringing forward half of this year's Basic Payment Scheme payment as an advance injection of cash to farm businesses, will help farmers deal with high fertiliser prices.

We are monitoring the situation closely, including through the UK Agriculture Market Monitoring Group. Defra is in regular contact with key industry figures including the National Farmers Union, the Agriculture and Horticulture Development Board and the Agricultural Industries Confederation.

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