Farmers should be paying less for potash

It is encouraging to hear the new Environment Secretary David Milliband pledging to resolve the fiasco of belated payments to our farmers as a priority. Only time will tell.

There is another important issue which my MEP Robert Sturdy believes he should also be concerned about – the lack of trade competition with potash, an agricultural fertilizer.

And before you yawn and move on, let me explain why.

At the moment this is sourced from two potash producers in the EU who own a company in Cleveland. There is little or no competition, Robert says there is no free market for potash.

Demand for potash is expected to increase because of the predicted boom in biofuels. Farmers need potash to grow crops such as beet which is used for this.

However, potash can be produced cheaper in countries such as Belarus and Russia, but farmers in the UK have to pay higher than market prices because of unfair costs on goods coming from outside the EU.

Robert, the Conservative International Trade spokesman, has asked Trade Commissioner Peter Mandelson to investigate. He is concerned about protectionism playing a part in this. His letter says:

“It is my view that anti-dumping measures are being used disingenuously as a means of protectionism. Foreigh Office officials have admitted to me privately that the UK’s support for these anti-dumping measures is motiviated by political desires to keep a small number of jobs in the North-East of England.

“This seems to be gross hypocrisy when veiwed alongside the British Government’s position on agricultural reform. Farmers are having their support reduced while being prevented from accessing products that would make them more competitive.”

I have just fired off a press release to the agricultural trade journals on this. Let’s hope Minister Milliband will take note too.