RISING demand for fertiliser, put at an extra 200,000t for the current season, means fresh profits for UK makers and suppliers, says the Agricultural Industries Confederation.

“This will be a welcome reversal after the 20% decline in consumption over the past decade,” sector chairman David Stacey said at the AIC’s annual fertiliser dinner in London last night.

Manufacturers would just about keep pace with demand, he forecast.

The upswing in demand reflected significant rises in the value of farm commodities, including a near doubling of wheat prices and a 60% rise in milk prices, he said.

Following the Terra / Kemira Growhow merger he did not rule out further consolidation. “Competition from manufacturers in areas with low gas prices means further consolidation to cut manufacturing costs in the UK cannot be ruled out.”

Climate change was set to be a key issue for the industry. “We have joined forces with others to shape a joined-up industry response on climate change.

"A heavyweight response, based on factual evidence, is critical if our voice is to be heard and respected,” said Mr Stacey.

Hard facts

“Too often unsubstantiated claims of pressure groups make the headlines, while hard facts – such as the report by the European Fertiliser Manufacturers Association that a properly fertilised crop of wheat will capture 8.3t/ha more carbon dioxide than a crop without fertiliser - go unreported.

“I believe the working group has ensured that common sense and science prevail on the policy makers. What’s more, so far we have avoided the imposition of crippling environmental taxes.”

On fertiliser security he signalled that membership of the Fertiliser Industry Assurance Scheme, designed to enhance fertilizer security and traceability, needed to accelerate.

“There should be no room for doubt. Geoff Rooker [junior DEFRA minister] has made it clear that there is a carrot and a stick: we need to regulate ourselves or we will be regulated, and that will be burdensome and onerous.” 

So far 58 fertiliser businesses had registered. But of the 150 in the pipeline only 17 were set to be audited by Christmas.

“By my reckoning that means it will take four years for everyone to be registered and that is not an option. Today the fertilizer executive agreed that we need to achieve full compliance by June 1 2008, or we can expect government legislation.”