The EU Commission released its market brief on fertilisers on 1 July. Focussing on the economic and environmental impact of fertilisers, the brief found that their use in the EU has stabilised in recent years. However, the adoption of precision farming technologies offers potential for more efficient usage.
The economic benefits of a more efficient application of fertilisers are clear. The price level of fertilisers can have a significant impact on farmers as they account for an average of 10% of consumption costs. Additionally, the cost of nitrogen fertiliser is heavily dependent on the price of natural gas, as this represents 60% to 80% of the production costs. For the agriculture sector, this increases their exposure to volatile world energy prices.
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