Fertiliser company profits soared to 500% from 2020 to 2022 according to new analysis by the Energy and Climate Intelligence Unit. In the same period, there was record food price inflation of nearly 20%, with prices reaching the highest point in 46 years.
The war in Ukraine has driven the price of natural gas up and as it used to make conventional fertiliser, this has pushed fertiliser prices to an all time high. The most commonly used fertiliser is ammonium nitrate, which was £719 per tonne in 2022, compared to £217 per tonne in 2020
According to the ECIU, the three main companies that supply the UK market, CF Industries, Yara and Origin Enterprises made a combined net profit of £5.45 billion in 2022, rising from £909 million in 2020. These windfalls echo the profits seen by oil and gas companies in 2022.
Vicki Hird, head of sustainable farming at Sustain said;
"Farmers are battling on numerous fronts; major weather events, lack of confidence in government support and major competition thanks to botched trade deal negotiations. They really need more support to transition to more sustainable farming methods that are less reliant on inputs from volatile markets. Furthermore, reducing use of fertilisers will also help clean up the UK’s rivers, which can not cope with the level of fertiliser run off, the animal waste from intensive livestock units, alongside major sewage pollution."
You can read the ECIU analysis in full here
Published Wednesday 19 July 2023
Sustain: Sustain The alliance for better food and farming advocates food and agriculture policies and practices that enhance the health and welfare of people and animals, improve the working and living environment, enrich society and culture and promote equity.
