Commons Sense

House of Commons · Ministers' Questions

Fertiliser Costs

Thursday 8 September 2022 · 4 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 1 Partly answered 1 Not answered 0

Key points

  • Fertilisers account for approximately 9% of food production input costs.
  • CF Fertilisers has halted CO2 production at its Billingham plant due to rising global energy prices.
  • The new Minister aims to assess the CO2 implications of plant shutdowns on agriculture.

Topics (select to filter)

Questions & Answers

Q1 Justin Madders Lab Ellesmere Port and Bromborough
Agriculture & Rural Affairs
Context

The question arises from concerns about the impact of rising fertiliser costs on farmers' input costs, leading to potential increases in food prices.

Question

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.

Answer from Mark Spencer

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.

Answered
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Q2 Justin Madders Lab Ellesmere Port and Bromborough
Employment Agriculture & Rural Affairs
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.

Question

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.

Answer from Mark Spencer

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.

Partly answered

Not addressed: Apology for job losses and increased food prices due to CO2 production halt

How: Of Course, We Do Not Want The Company To Exploit Its Monopoly Position

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Q3 Robert Goodwill Con
Energy Agriculture & Rural Affairs
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.

Question

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?

Answer from Mark Spencer

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.

Not addressed: Specific timeline for ammonia delivery and production restart

How: We Will Have To Look At Alternatives Such As Agriculture Methods From The '30S And '40S

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Q4 Daniel Zeichner Lab Cambridge
Agriculture & Rural Affairs
Context

High input costs, including fuel, fertiliser, and labour, affect farmers significantly. The shutdown of facilities is expected to have CO2 emissions consequences.

Question

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?

Answer from Mark Spencer

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.

Not addressed: Publication of Department's CO2 impact assessment

How: I Have Been In Post For 12 Hours, So I Hope You Will Forgive Me If I Cannot Yet Provide A Full Assessment.

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