The latest analysis of the fertiliser market shows that prices in the UK are firming up as demand increases in Britain and the rest of the EU. However, voices within the UK farming industry have suggested there may be a more sinister reason behind the steadily rising prices.

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Farming industry representatives and MPs have criticized the lack of competition in the fertiliser market, suggesting the extreme price rises in recent years are the result of a monopoly in the British market. Last month NFU Scotland president Nigel Miller wrote to the competition authorities in the UK to look into the partial takeover of Kemira Growhow by market leader Yara.

Following Mr Miller’s intimations, a number of MPs in Scotland have suggested the concentration of power in the fertiliser markets could have precipitated a rise in costs. Scottish MEP George Lyon has demanded the European Commission look into the situation, stating that in the past ten years farmers’ returns have increased 35 per cent, but input costs have increased 42 per cent. He said this is largely due to a 173 per cent increase in fertiliser costs between 2003 and 2009.

Mr Lyon said, “Growhow is now a monopoly manufacturer for nitrogen fertiliser in the UK. Not only does it control the compound fertiliser market but the only competition it faces is from the blenders and they too are reliant on Growhow for their supply of nitrogen. I called on the Commission to carry out a thorough investigation of the fertiliser market. If they identify abuse by the dominant player then they must take tough action.”

A fertiliser industry spokesperson responded that the UK market is only a small part of the global market and that prices are dictated by changes in the US and elsewhere in the world.

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