The drastic increase in fertilizer prices is felt in the entire agriculture and food industry. The price increase has many components, and the domestic market was also shaken by the fertilizer cartel and László Bige's announcement the other day - emphasize the Association of Hungarian Farmers' Associations and Farmers' Associations (MAGOSZ) and the National Chamber of Agrarian Economy (NAK) in their statement to the Hungarian Nation.

As is well known , the Economic Competition Authority (GVH) recently revealed a cartel affecting the entire domestic fertilizer market and imposed a HUF 14.1 billion fine on the cartels. According to the GVH's investigation, several domestic players - especially Nitrogénművek Zrt. and its group of companies - unlawfully obstructed price competition and imports for years.

And the extent of the huge damage indirectly caused to Hungarian citizens and domestic farmers cannot even be estimated, since it is a question of basic agricultural input materials.

MAGOSZ and NAK welcome the decision of the GVH and ask the authorities to act strictly in the future in the case of violations of the law and improper behavior, as well as to act decisively to prevent it. The two agricultural organizations also consider it outrageous that the owner of Nitrogénművek Zrt. made a threatening statement to the farmers that they plan to serve Hungarian customers for only one day this year, and from then until May all goods will be shipped abroad.

In other words, those who cannot order fertilizer from them on that day cannot buy from the monopoly company until next May, they explain.

MAGOSZ and NAK agree with the position of the Ministry of Agriculture that all possible means must be deployed in the interest of farmers, and the security of the domestic fertilizer supply must be ensured. In the recent period, there has been a significant price increase on the world fertilizer market. One of the reasons for this is the rapid and significant increase in energy costs. Because natural gas, which is essential for the production of nitrogen-containing fertilizers and accounts for the largest part of the costs, is changing hands on the stock exchange at more than ten times the price compared to the same period of the previous year, the announcement states.

While in October 2020 the average price was around 14 euros per megawatt hour, last month the European price of natural gas was 156 euros. In addition, the lower exchange rate of the forint and the obstacles to international deliveries in connection with the coronavirus epidemic in some places and from time to time also influenced and continue to influence the price increase, they write.

In agriculture, the increase in the price of artificial fertilizers results in a significant increase in costs, which goes beyond the cultivation of crops in fields and gardens, the increase in costs is also transferred to animal husbandry and the food industry. As an example: while an intensively productive farmer engaged in arable crop cultivation used to apply fertilizer to his land in the amount of 50-85 thousand forints per hectare, now it is already 205-255 thousand forints. Although the price of crops has also increased, producers cannot realize additional profit, and may even be unprofitable due to the drastic increase in input material prices. Furthermore, due to the significant increase in the price of fertilizer, many people will not be able to spend the necessary amount to achieve the desired yield level - they point out.

As we wrote , László Bige cornered the farmers. The left-wing oligarch and Márki-Zay's hopeful sponsor has already given a message to the farmers in an interview with HVG. He said: “There will be a severe shortage of goods due to the forced shutdowns that have become common in the region, which will be reflected in the price of fertilizer and we want to take advantage of that. From next January to May, the question will not be what the price of fertilizer will be, but whether you will get it or not, because there will be no goods."

Source: magyarnemzet.hu. Opening image: sztabfold.hu