Watchdog rejects fertiliser price-fixing claims

By Roger Chesher

THE OFFICE of Fair Trading has rejected claims, made by the Scottish and English NFU, that the UK fertiliser market is operated in contravention of the Competition Act.

While the fertiliser industry obviously welcomes the decision, costs to Kemira, Hydro and Terra are estimated to be in the region of 1 million, a figure which presumably only contributes to the price of fertiliser.

The Scottish NFUs belief that prices are higher in the UK than the rest of the EU could be ill-founded, as the Defra Inputs Taskforce has acknowledged an error in price calculations between Ammonium Nitrate (34.5%N) and German Calcium Ammonium Nitrate (27%N).

The Fertiliser Manufacturers Association says that prices are similar throughout the EU.

But the English NFU expressed disappointment at the decision and continues its campaign against anti-dumping levies in Europe.

However, that campaign may take a back turn, as the recent review by the Commission of Russian AN recommends that levies should continue, and even be raised from 26 to 47.

This awaits ratification by member states before Christmas, and will come into effect almost immediately if approved. It is unlikely to have much effect on the price of imports to the UK.

Meanwhile, nitrogen sales have been slow, but there are signs that volume is about to pick up.

Prices have stabilised in a bid to stimulate business before a more substantial price rise around the year-end.

Terra has even cut back a little with Nitram reported on farm around 111/t.

The anticipated release of new compound prices has been delayed, but prices are expected to become more attractive this side of Christmas.

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