Local view for "http://purl.org/linkedpolitics/eu/plenary/2012-01-19-Speech-4-027-000"
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"en.20120119.3.4-027-000"2
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"Madam President, this is a very timely debate, and I would add my congratulations to José Bové for a well balanced report that highlights the real problems that farmers face because, as other speakers have pointed out, on the one hand, farmers are selling their produce to a handful of very powerful multinational retailers, and, on the other hand, they are purchasing their inputs from a handful of very powerful agrochemical or agro-industry multinational suppliers. The result, of course, is that farmers are squeezed from both sides by these huge and powerful companies.
This highlights the urgent need for action in the CAP reform and in other areas where the Commission is taking action to try and help this matter. We need to strengthen the hand of farmers when it comes to negotiating (a) with the retailers, and (b) with their input suppliers. If we can achieve that, what will then happen is a better return for farmers, a better margin, and less reliance on the need for taxpayers’ support in the future.
There is one particular area that I think needs immediate action from the Commission, and that is in regard to the fertiliser market. If I could give you the example, Commissioner, of the UK fertiliser market, there is a monopoly manufacturer for nitrogen fertiliser called GrowHow. It is 50% owned by its largest competitor Yara, which is the largest fertiliser manufacturer in the world. The other half of GrowHow is owned by CF Industries, which is the largest manufacturer of nitrogen-based fertilisers in North America. Surely this level of consolidation means there is little real competition in the UK marketplace. I suspect this is replicated throughout the rest of Europe. The only competition they face is from the blenders, but they, unfortunately, have to buy their nitrogen from that same supplier.
So between 2003 and 2009, output prices for agricultural products increased by 35%, their inputs increased by 42%, but fertiliser increased by 173%. That is evidence that the market is failing. Commissioner, could you give me a guarantee that you will investigate this matter and ask the Competition Commissioner to look closely at how the fertiliser market is operating in the EU?"@en1
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