Animal Feed & Animal Nutrition News
Fertiliser companies accused of price fixing

// 19 sep 2008

The world's largest fertilizer companies have to face two (class action) lawsuits in Minnesota and Chicago in the US for accusations of price-fixing and conspiracy.

So far spokesman for the companies have denied any wrongdoing. Prices of fertiliser have risen in a result of tight supplies and increasing demand for fertiliser by farmers due to expanding grain and food production.

Companies included in the lawsuit are:

  • Mosaic of Plymouth, Minnesota, USA,
  • Agrium of Calgary, Alberta, Canada,
  • Potash Corp. of Saskatchewan Inc., Canada,
  • JSC Uralkali of Moscow, Russia;
  • RUE PA Belaruskali, of Soligorsk, Belarus,
  • RUE PA Belarusian Potash Co. of Minsk, Belarus,
  • JSC Silvinit of Solikamsk, Russia, and
  • JSC International Potash Co. of Moscow, Russia.

In several countries, obscure laws shield makers of potash and phosphate -- two key ingredients in fertilizer -- from certain antitrust rules.

In the US, for example, phosphate makers are among a handful of industries empowered by the 1918 Webb-Pomerene Act to talk with competitors about pricing and other issues.

The allegations come as the fertilizer companies have profited form the global grain-price boom of the past two years.

Price rocketed sky high
The price of phosphate has climbed to about $1,100 a tonne, up from $430 last year, while the price of a tonne of potash is now more than $930, up from $275.

The Minnesota suit alleges, among other things, that the companies exchanged "sensitive, non-public" information about prices and demand, allocated market shares, and coordinated output.

Farmers around the world have cried foul as they've watched the prices rise. The North Dakota Farmers Union, a trade group, also asked to investigate the price increases. Farmers in India and Russia have complained to their countries' regulatory bodies.

Government intervention
In March, Russian antimonopoly regulators required the country's largest potash maker, Uralkali, to cut domestic prices of the plant nutrient, a key ingredient in fertilizer, after wrangling with the company over its pricing behaviour in court.

Brazil's government is considering nationalizing the country's fertilizer deposits to help reduce farmers' production costs.

In 1993 Canadian and US potash producers were similarly accused in a number of class-action lawsuits.

The lawsuits were later dismissed.

For regular updates on feed news subscribe here to our free newsletter

GMP: Critical in feed-to-food chain

Hinner Köster: Feed safety parameters as part of food safety is nowadays the highest priority when we evaluate feed quality. Nutritional, technical and emotional quality of feed used to be the highest priority and remains important for common industry policy, however, it is now of lesser importance then feed safety. Even developing countries are no longer isolated but part of a global world and are therefore partially regulated by universally established control systems at all stages of production and in all sectors of their industry.Read more...

Animal Feed Statistics from around the world

"WE HAVE A DREAM..."

To gather Animal Feed Production Data - from feed production statistics to number of feed production facilities - from around the world to create a

WORLD MAP OF ANIMAL FEED

We've made a start here.....


Poll
Which topic do you find the most remarkable in 2008?
The skyrocketing feed prices
The melamine affairs
The many take-overs by large animal companies
The GMO crops discussion in the EU
Go to poll archive


RBI