Fears have been expressed in the agriculture and fertiliser supply sectors that a global upheaval in prices could lead to food inflation and food shortages.
In recent months the price of artificial fertiliser has reached record levels. The price has now more than doubled in comparison to this time last year.
Artificial fertiliser is widely used in the agriculture sector to increase yields.
But the increase in the cost of natural gas, which is widely used in the production of fertiliser, coupled with export controls in China on raw materials, has led to a surge in prices.
Some factories in Europe have temporarily closed or scaled down production citing the high cost of natural gas for having a negative impact on margins.
Close to 1.6 million tonnes of fertiliser are sold in Ireland every year.
One of the biggest importers of fertiliser is the Limerick based Grassland Agro firm.
The company’s managing director has said that in 20 years of business he has never experienced such difficulties in sourcing fertiliser and the associated prices.
Liam Woulfe told RTÉ News “As we approach the coming Spring and the grazing and planting period, there is no guarantee that the required level of fertiliser that farmers have been used to will be available. I think the current crisis will continue at least until next April.”
He said that the global pandemic has also added to the difficulties as a smaller number of ships are available to the shipping companies.
He added: “If the issue isn’t rectified in the coming weeks we will be on the verge of a food crisis as well as a fertiliser crisis”.
That is because of growing fears that farmers will reduce planting and production due to the cost of fertiliser.
Ian Kelleher is a dairy farmer and the deputy Chairman of the Irish Creamery Milk Suppliers Association in Limerick.