EU explores fertiliser stockpiling as food crisis looms - FT中文网
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欧洲委员会

EU explores fertiliser stockpiling as food crisis looms

Supplies of crop nutrients have been disrupted by Middle East war
00:00

{"text":[[{"start":8.2,"text":"Brussels will explore stockpiling fertiliser supplies and boosting European production, as the war in the Middle East piles pressure on farmers and risks exposing Europe to higher food prices."}],[{"start":20.049999999999997,"text":"The European Commission said it would assess “preparedness options for key fertilisers”, including requiring member states to have seasonal or minimum stocks, and potentially putting in place joint procurement of fertilisers and their components. "}],[{"start":34.75,"text":"The measure is one of several moves by the Commission to tackle the high prices of crop nutrients and secure supplies, in a package unveiled on Tuesday. "}],[{"start":44.1,"text":"Presenting the plan, commissioner for agriculture Christophe Hansen said: “Food security starts with fertiliser security. Europe must produce more and depend less on others for the nutrients that sustain our agriculture.”"}],[{"start":56.400000000000006,"text":"Before the war, as much as a third of globally traded fertilisers transited through the Strait of Hormuz, leaving food supply chains exposed to disruption from the US-Israeli war against Iran."}],[{"start":68.9,"text":"Nitrogen-based fertiliser prices last month were approximately 70 per cent above their 2024 average. Gas accounts for as much as 80 per cent of their costs."}],[{"start":78.9,"text":"EU officials are not concerned about a knock-on effect on food prices immediately but have warned that this could filter through by the end of the year, as farmers use up fertiliser stocks bought before the Iran war. "}],[{"start":90.95,"text":"Fertiliser costs are particularly important for arable crop farmers and high prices risk piling pressure on food producers and consumers alike, as well as posing thorny challenges for tight public finances and political leaders. "}],[{"start":106.15,"text":"The proposal comes amid a broader shift towards strategic stockpiling of food and agricultural inputs, as governments increasingly treat supply chains as a national security issue after successive shocks from the pandemic, the Ukraine war and Middle East tensions exposed vulnerabilities in global trade. "}],[{"start":123.10000000000001,"text":"Several northern European countries already maintain agricultural emergency reserves. Finland’s longstanding security-of-supply system includes fertiliser stockpiles alongside grain and fuel reserves, while Sweden this year announced plans to stockpile fertiliser, seeds and grain as part of its “total defence” strategy after joining Nato."}],[{"start":145.20000000000002,"text":"Brussels will also legislate to amend the bloc’s Common Agricultural Policy and allow beneficiaries of agricultural funding to receive advance payments to compensate for extra fertiliser costs. "}],[{"start":156.15,"text":"Speaking ahead of the announcement, Lennart Nilsson, president of farming lobby Copa Cogeca, said “the energy crisis really puts the focus on the importance of a strong and stable CAP”, as discussions on the EU’s next joint budget continue."}],[{"start":171.65,"text":"The Commission also wants to create “lead markets” for organic and low-carbon fertilisers that are made in Europe, such as requiring low-carbon fertilisers in blended products, in order to boost demand."}],[{"start":183.5,"text":"Other technical measures under consideration include allowing farmers to use digestate, a nutrient-rich waste material from biogas production, whose use is limited because of high nitrogen content."}],[{"start":195.35,"text":"Officials are keen to show that they can contain rising costs before fertiliser prices feed through into broader food inflation, potentially triggering effects similar to those seen after the 2022 energy crisis."}],[{"start":209.15,"text":"The quickest relief could come through temporarily looser state aid rules already proposed by the Commission, potentially leading to uneven support across the EU. "}],[{"start":218.75,"text":"However, environmental measures such as the EU’s emission trading system and carbon border adjustment mechanism are still set to apply to fertilisers, despite Copa Cogeca being among the groups calling for a relaxation of the rules. "}],[{"start":231.85,"text":"Additional reporting by Susannah Savage in Lisbon"}],[{"start":242,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1779234863_9139.mp3"}

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