Fertiliser Costs 2022-09-08
2022-09-08
TAGS
Response quality
Questions & Answers
Q1
Direct Answer
▸
Context
The question arises from concerns about the impact of rising fertiliser costs on farmers' input costs, leading to potential increases in food prices.
What recent assessment has he made of the impact of the cost of fertiliser on food producers? Fertilisers make up around 9% of input costs into food production. Cost increases may be absorbed at various points within the supply chain but have resulted in a huge spike due to rising global energy prices.
Fertilisers make up around 9% of input costs into food production. Cost increases may be absorbed at various points within the supply chain, but we have brought forward direct payments to help people with their cash flow and will continue to monitor this.
▸
Assessment & feedback
Response accuracy
Q2
Partial Answer
▸
Context
The question follows an incident where constituents of the MP were made redundant from CF Fertilisers. The company then announced halting CO2 production, which could negatively affect food prices.
Last month my constituents at CF Fertilisers were made redundant. Within days, the company halted CO2 production at its Billingham plant. Despite warnings about this vulnerability to his predecessors, he asks if the Minister will apologise to those who have lost jobs and everyone impacted by rising food costs due to the decision.
Of course, we do not want the company to exploit its monopoly position. The plant ceased ammonia production but will continue to produce ammonium nitrate and nitric acid. We are engaging with the plant to secure supplies of fertiliser and other products.
▸
Assessment & feedback
Apology for job losses and increased food prices due to CO2 production halt
Of Course, We Do Not Want The Company To Exploit Its Monopoly Position
Response accuracy
Q3
Partial Answer
▸
Context
Concerns over the UK's nitrogen fertiliser requirements, with significant supply dependency on the Ince and Billingham plants. The Ince plant is closed while the Billingham plant awaits ammonia delivery.
The situation for farmers requiring around 2.2 million tonnes of nitrogen fertiliser is extremely serious. About 1 million tonnes was provided by the Ince and Billingham plants, now affected due to North sea gas reliance. When will ammonia arrive at Billingham for production restart?
We take seriously the challenge to UK agriculture and other sectors. We recognise the dependence on AdBlue, also derived from similar products. Solutions may involve looking back at historical agricultural practices like nitrogen-fixing crops to address challenges.
▸
Assessment & feedback
Specific timeline for ammonia delivery and production restart
We Will Have To Look At Alternatives Such As Agriculture Methods From The '30S And '40S
Response accuracy
Q4
Partial Answer
▸
Context
High input costs, including fuel, fertiliser, and labour, affect farmers significantly. The shutdown of facilities is expected to have CO2 emissions consequences.
I welcome the Minister to his position. Recognising high input costs for farmers and the impact on agriculture from facility closures, will he publish a Department assessment of the CO2 implications of such plant shutdowns?
Of course, we recognise the challenge. I have been in post for 12 hours and hope that this early opportunity will allow me to make a full assessment of the situation.
▸
Assessment & feedback
Publication of Department's CO2 impact assessment
I Have Been In Post For 12 Hours, So I Hope You Will Forgive Me If I Cannot Yet Provide A Full Assessment.
Response accuracy