The rising cost of fertilizers has once again become the focus of debate in the European Union, with Spain demanding additional measures from Brussels, considering the EU proposal “insufficient,” while the Spanish industry is asking the Government for new actions to guarantee production and supply in the coming months.
The Minister of Agriculture, Fisheries and Food, Luis Planas, demanded more tools in Luxembourg to address the escalating prices of fertilizers, considering that the initiatives proposed so far by the European Commission are “absolutely insufficient” .
“This is an issue that continues to be problematic, and we will insist to the Commission on the need to put forward measures that will allow us to maintain fertilization levels,” Planas said upon his arrival at a Council of Agriculture Ministers meeting where the situation of agri-food markets and the impact of the international context, including the closure of the Strait of Hormuz, were analyzed.
The minister warned that the situation remains complex as a result of the crisis in the Middle East and stressed that, even in a scenario of geopolitical stabilization, prices would take “weeks or months” to normalize .
Planas also criticized the fact that the EU proposal is based primarily on the redistribution of unspent funds from the European Agricultural Fund for Rural Development (EAFRD), without additional contributions. In this regard, he argued that aid should cover 100% of the additional costs, compared to the 50% to 80% percentages proposed by Brussels, and also questioned the limits on national co-financing.
According to the Ministry, the Spanish government has already mobilized €500 million in aid to the sector, a figure that, as Planas argued, represents the most significant response in the European Union to offset the rising cost of fertilizers. With this measure, he added, approximately 32.5% of the price increase recorded since February has been covered, while the Commission has authorized up to 70%.
“What’s strange is that Spain is contributing 500 million and the European Union is contributing zero,” the minister lamented.
For its part, the European Commission recently announced a package of up to 540 million euros to support the agricultural sector in the face of rising fertilizer prices, within a proposal that includes greater flexibility in the Common Agricultural Policy (CAP) and the possibility for Member States to supplement the aid with national funds.
Alongside the European political debate, the industrial sector has expressed its concern about the market situation. The National Association of Fertilizer Manufacturers (Anffe) has asked the Spanish government for specific measures to ensure the continuity of fertilizer production and distribution in the coming months.
According to the employers’ association, it is necessary to encourage purchase planning and stock management to avoid supply tensions and possible collapses in the fertilizer campaign, especially in a context of lower agricultural profitability and high uncertainty.
Anffe also demands a specific strategy to guarantee supply in risk situations, after holding meetings with the Minister of Economy, Carlos Cuerpo, and with Planas himself.
The organization warns that the decline in consumption, coupled with farmers’ reduced willingness to make advance purchases, could create supply difficulties for the upcoming season, which will begin in October.
