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Spanish Farmer Outcry over Oil and Fertiliser 'Paradox'

27 January 2015

SPAIN – Spanish producers are questioning more expensive fertiliser given the fact that fuel is cheaper, highlighting a 46 per cent crude oil price drop last year.

The Coordinator of Farmers and Ranchers (COAG), in a report by its agricultural economics department, has revealed urea up 14 per cent, diammonium phosphate up 12.4 per cent and ammonium nitrate up 10.6 per cent.

Meanwhile, farm diesel has dropped nearly 40 per cent. 

This is "intolerable", according to CAOG secretary, Miguel Blanco, who says large fertiliser companies are stopping farmers from benefiting from decreases in fuel prices.

He blamed “artificial market distortions” on the price situation.

He said: "It is paradoxical that the almighty fertilizer companies hide behind the rise in oil to justify price increases and when the trend reverses, deny their costs directly related to the price of Brent oil".

The COAG report said urea priced at €38.7 per 100 kilos in June 2014 lifted to €44 by December.

And, despite an overall drop in input costs last year, farmers are paying the largest proportion on inputs since 1990, COAG added.

TheCattleSite News Desk

Top image via Shutterstock

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