Norwegian fertiliser juggernaut Yara yesterday reported strong fourth quarter figures, despite reduced sales. Though Yara shares grew, the news that the company’s margins had grown in contrast to the global fertiliser market, which has suffered from a lack of demand and factors related to the Eurozone crisis and economic downturn, sparked the ire of farming unions.

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NFU Scotland has been critical of the fertiliser market, which it says is dominated globally by a worryingly small number of players, since last year. In October, the union called on the European Commission to investigate the market to ensure that it was operating fairly. Union representatives claim there is a lack of transparency in the global market.

The Union’s concerns have been exacerbated by a recent European Parliament report by French green MEP and farmer José Bové and Scottish Farm Income Figures, which were released last week. Both highlighted the impact input prices continue to have on farmers’ margins.

Mr Bowie said in October that Yara’s third quarter profits had “Reinforced NFUS’ long-term view that the cost of fertiliser production and the cost of fertiliser at the farm gate have become completely disconnected.”

Although Yara chief executive Jørgen Ole Haslestad was optimistic about the future and remained adamant that sales would increase, stating, "Crop prices and farm margins remain healthy, and fertiliser deliveries will need to recover to avoid a decline in global grain stocks," Mr Bowie and NFUS expressed concerns over continuing trends in the fertiliser market.

Mr Bowie said, “Fertiliser is a key cost to food production and it is a worry to see a major manufacturer choose to grow its margin despite a reduction in sales.”

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