Local view for "http://purl.org/linkedpolitics/eu/plenary/2008-07-09-Speech-3-451"
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"en.20080709.37.3-451"2
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"Mr Burke, I share your concern about rising fertiliser prices. They have indeed risen disproportionately. Understandably, that creates major problems and great concern in European farming.
Fertiliser prices have risen because of the sharp rise in demand, which comes on top of higher transport and energy costs. There are, therefore, three factors: higher demand because of the rapid growth in other parts of the world, higher energy prices and higher transport prices. Demand has risen across the world, as you know, and this affects not just fertiliser but a whole range of other goods too, including cash crops and food.
It is important to remember that, for the fact is that although European farmers have to spend more money on fertiliser, as they are indeed doing, at the same time they are getting better prices for their harvests. FAO statistics over a comparable period show that food prices have risen by 37% over a 12-month period. We saw the sharpest rise with milk products, at 80-200%, and cereals, at 50-80%.
The Commission believes it is vital to observe the rules of competition. As long as that is the case, the Commission does not consider it appropriate to intervene in a market where the latest developments can be traced largely to factors over which the Commission has no influence whatsoever. Let me repeat: we have no influence over the three deciding factors that led to the price rises.
As regards longer-term developments, the Commission would also draw your attention to the importance of promoting competition on the natural gas market. I think there is a real chance here of easing the situation somewhat. If the measures the Commission proposed under the third energy package are accepted, we should see an improvement in gas market prices. That could also lead to lower prices for nitrogen fertiliser produced in the European Union. As you know, however, it all depends on whether the energy package proposed by the Commission is accepted."@en1
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