Title: Analysis of price volatility of mineral fertilisers: possible issues for European farmers

Authors: Bérengère Lécuyer; Vincent Chatellier; Karine Daniel

Addresses: INRA, UR 1134 (LERECO), Rue de la Géraudière, BP71627, 44316 Nantes, France ' INRA, UR 1134 (LERECO), Rue de la Géraudière, BP71627, 44316 Nantes, France ' ESA, LARESS, 55 rue Rabelais, 49007 Angers, France

Abstract: European farmers are currently affected by an increase in the price of fertilisers (from an index of 100 in 2005 to 150 in 2012 after it peaked at almost 200 at the end of 2008) that calls into question the future availability of these kinds of inputs. Since 2007, the strong demand from emerging countries, geopolitical tensions over natural resources, and the rise in the price of energy have been exerting upward pressure on the prices of mineral fertilisers that affect farmers' production costs especially in the European Union, which is not self-sufficient in sources of NPK. Analysis of data from the Farm Accountancy Data Network shows that the cost of fertilisers increased from €80/ha in 2004 to €114/ha in 2011. This rise had the highest impact in 2009 because it was not offset by higher agricultural prices (the cost of fertilisers accounted for 5.4% of agricultural production in 2009 and only 4.4% in 2011). The cost of fertilisers and its increase is particularly high for farms specialised in cereal, oilseed and protein crops, and accounted for 13.9% of agricultural production in 2009.

Keywords: price volatility; fertiliser prices; European Union; fertilisation costs; sustainable agriculture; Farm Accountancy Data Network; mineral fertilisers; nitrogen fertilisers; phosphorous fertilisers; potash fertilisers; EU farmers; cereal crops; oilseed crops; protein crops; agricultural production.

DOI: 10.1504/IJARGE.2014.066255

International Journal of Agricultural Resources, Governance and Ecology, 2014 Vol.10 No.4, pp.344 - 361

Accepted: 18 Sep 2014
Published online: 25 Apr 2015 *

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