EU Farmers Concerned About New Tariffs on Russian Fertilizers

The European Commission has initiated the introduction of additional tariffs on the import of Russian and Belarusian fertilizers, raising concerns among farmers and agricultural enterprises. Russia remains one of the key suppliers of fertilizers, accounting for about 25% of this product’s imports into the European Union.

This is reported by AgroReview

Implications for the Agricultural Sector

The new tariffs, which could rise from 40-45 euros to 315-430 euros per ton over the next three years, aim to reduce dependence on Russian supplies and increase economic pressure on Moscow. However, agricultural associations such as Copa-Cogeca warn of serious risks that these changes may cause.

Alternative supply sources could create additional pressure on logistics chains and lead to increased costs. This, in turn, could result in agricultural inflation, reduced farmer incomes, and loss of competitiveness. Currently, fertilizer costs account for about 10% of the variable costs of farming operations, and in the field, grain, and oilseed segments, this figure can reach up to 30%.

“Purchasing Russian fertilizers effectively means funding the Russian war machine,” noted European Parliament rapporteur Inese Vaidere.

She emphasized that these measures were necessary three years ago, but now Europe must quickly adapt and diversify its supply sources.

Prospects and Challenges

The European Commission believes that the new tariffs could stimulate domestic fertilizer production. However, high energy costs remain a key issue directly affecting the production of nitrogen fertilizers. Europe has sufficient production capacity, but the lack of guarantees regarding affordable prices raises concerns among farmers.

To ensure stable supply and avoid shortages, the EU plans to expand cooperation with other countries. Despite general support for the initiative, some EU member states, including Hungary, have opposed its implementation, emphasizing the need for regular monitoring of the situation. The European Parliament will officially consider this issue at the beginning of next month, after which lawmakers are expected to reach a joint decision with the governments of member states.

The introduction of new tariffs could have long-term consequences for the entire European agricultural sector, particularly affecting production costs, pricing policies, and the competitiveness of agricultural enterprises.