NFUS to take fertiliser companies to CMA over profiteering

NFU Scotland has called for the Competitions and Markets Authority (CMA) to look into the UK fertiliser market following a huge surge in profits by some manufacturers.

The three largest UK fertiliser suppliers, CF Industries, Yara and Origin Enterprises, made almost £5.5bn in combined net profit in 2022, up from £909m during the previous year, according to a report by the Energy and Climate Intelligence Unit.

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This substantial increase in profits came at the same time as a huge rise in the cost of fertiliser on farm, with ammonium nitrate prices peaking at £841/t in July 2022, more than double year-earlier levels.

NFU Scotland plans to approach the CMA (the industry regulator) to look into the UK fertiliser market and its effect on UK agriculture and food inflation.

Martin Kennedy, NFU Scotland president, said: “For farmers and crofters, faced with an unprecedented spike in fertiliser prices, these figures reek of profiteering by a very small group of manufacturers.

“The scale of profits achieved is set against a backdrop of record gas prices, which fertiliser manufacturers identified as a major factor in driving price increases.

“One UK manufacturer also received significant taxpayer support in September 2021 to continue production as it indicated it would not be viable without government intervention.”

An intentions survey carried out by NFU Scotland between June and December 2022 found that increased costs on farm were already affecting production.