25.5.2023
EN
Official Journal of the European Union
C 184/111
3.5.
Fertiliser users, and notably arable farmers and mixed crop and livestock specialists, accounting for 62 % of EU fertiliser expenses and 69 % of EU nitrogen consumption (3), have been hit hard by the current crisis.
They are facing cash shortages for purchasing fertilisers ahead of crop harvest, as well as a cost-price squeeze, as the higher prices for agricultural products may not compensate for the effect of increased prices for fertilisers and other farm inputs (4).
Targeted support to fertiliser users may therefore help address the crisis, as enabled by the amended EU Temporary Crisis Framework for State Aid.
3.6.
However, there are strong budgetary limits and priority competition in funding such support by making use of the EU agricultural reserve worth EUR 450 million for the financial year 2023.
Funding such actions through national CAP strategic plans is not an appropriate option either, as these have just been approved and would require a long time to be amended.
Alternatively, making use of State aid raises both national budgetary constraints and the risk of significant competitive distortions between farmers from different Member States.
This is illustrated by the fact that only three Member States so far have implemented aid schemes dedicated to farmers' fertiliser purchases, for a total budget of EUR 855 million.
3.7.
The EESC considers that corrective measures improving the functioning of the EU fertiliser market are thus more advisable and more cost effective for taxpayers.
Such emergency, temporary measures should target both fertiliser supply and prices in Europe by facilitating imports and competition.
Some fertiliser companies are increasing their profit in huge proportion: a positive and strategic message in favour of this industry is necessary if we want them to use these means to invest in European factories and increase our rate of autonomy, which is the price of our independence.
3.8.
Following the proposal of 17 July 2022 by the European Commission, Council Regulation (EU) 2022/2465 of 12 December 2022 (5) provides for a temporary suspension of import tariffs for urea and ammonia (except from Russia and Belarus).
The EESC welcomes this decision, considering that besides partners already benefiting from free trade agreements with the EU (such as North African countries), other major supply sources should be positively impacted by such a suspension (such as the US, and Central Asian and Arab Gulf countries).
However, the Regulation entered into force too late to be effective for the 2022/2023 season, as most urea imports have been delivered or ordered at skyrocketing prices, while the Council limited it to a period of six months instead of the initial two years.
The EESC advises the Commission and the Council to extend the Regulation to the next season and to all nitrogen- and phosphorus-based fertilisers, as this would promote availability through the diversification of supply as well as alleviate EU domestic fertiliser prices.
3.9.
Other measures should also be urgently implemented to address the functioning of the EU mineral fertiliser market in the fields of logistics and regulation, including (i) incentivising farmers and fertiliser distributors to perform early purchases and manage price risks; (ii) facilitating harbour import logistics for fertiliser vessels and inland truck transportation; (iii) unifying national interpretations regarding fertiliser suppliers with respect to Russian sanctions; (iv) allowing temporary flexibilities in EU regulations including REACH, transport legislation, and the Fertiliser Product Regulation.
3.10.
The European Commission, following the technical proposals from its Joint Research Centre (6), should quickly propose legislative measures enabling the safe use of processed manure above the threshold established for nitrate vulnerable zones by the Nitrates Directive (RENURE), allowing a greater level of substitution of synthetic fertilisers.
Pending this new threshold, the EESC recommends that the current maximum threshold of 170 kg/ha/year of organic nitrogen be applied to all EU farmers.
Medium term domestic actions 3.11.
As mentioned in its Strategic Foresight Report 2022 (7), the EESC recommends reducing the EU's dependence on imports of feed, fertilisers and other inputs, and proposes a definition of open strategic autonomy applied to food systems based on food production, workforce and fair trade — with the overarching aim of ensuring food security for all EU citizens through a healthy, sustainable, resilient and fair food supply.
(3) (4) (5) (6) (7)
Source: FADN, 2017 For reference, the price for ammonium nitrate in France in November 2022 was 203 % above the level of January 2021.
By contrast, the price for milling wheat had risen by 45 % in the same period.
Source: La Dépêche Le Petit Meunier.
https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32022R2465 (OJ L 322, 16.12.2022, p. 81).
https://publications.jrc.ec.europa.eu/repository/handle/JRC121636 https://www.eesc.europa.eu/en/our-work/opinions-information-reports/opinions/strategic-foresight-report-2022 (see OJ, p. 45).