EU farmers facing higher costs after tariffs on Russian fertiliser

EU tariffs on Russian fertiliser imports that aim to cut funding for Moscow’s war in Ukraine have so far hit European farmers, raising costs and risking higher consumer prices while Russian companies say they can divert exports to other markets.

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“We're shooting ourselves in the foot,” farmer Cedric Benoist, deputy secretary general of French wheat farmers union AGPB and head of the cereals committee of EU farmer association Copa Cogeca, told Reuters, saying farmers are now faced with paying higher global prices.

Global fertiliser prices have been rising this year, World Bank data shows, in part due to the additional levies introduced on July 1 on top of import tariffs, adding to other challenges facing European farmers such high energy costs and environmental regulations.

Western countries did not impose sanctions on food or fertiliser exports over Moscow’s February 2022 invasion of Ukraine. But fertiliser export tariffs are now being imposed gradually over three years by Europe as it looks to further reduce dependence on Russian supplies.

Russia produces more than 20% of the world’s fertiliser and supplies around 25% of the EU's fertiliser imports.

The EU said it will be monitoring the impact of tariffs closely to ensure that the EU's fertiliser industry and farmers are protected.

Tariffs kicked off at 40 euros per metric tone for urea and nitrogen in July and are set to reach 315 euros per tone from July 2028. Average prices for urea, a nitrogen-based fertiliser, rose 26.5% to $496 per metric tone from May to July, World Bank data showed.