accc fertiliser inquiry

fyi

[1] (ACCC fertiliser inquiry) Conclusions
The ACCC was asked to examine the fertiliser industry and, in particular, consider the reasons behind the significant recent increases in fertiliser prices in Australia.

The significant rises in fertiliser prices in Australia are mainly attributable to rapidly increasing global fertiliser prices. These increases have been caused by a substantial increase in world demand for fertilisers associated with an expansion in agricultural production (particularly grains for food, feed for livestock and bio-fuels) and by rises in costs of production associated with the increasing cost of energy. This is occurring in a market where the global supply capacity is limited in the short-to-medium term.

A number of interested parties who made submissions to the ACCC as part of this inquiry raised concerns about the way in which fertiliser markets in Australia operated during the period from late 2007 to early 2008. Much of the conduct that raised concerns was caused by a situation of deficiency in short-term supply associated with an unexpected bringing forward of demand by end users in the context of rapidly increasing world prices.

The ACCC is satisfied that it received sufficient information from interested parties in the form of comprehensive submissions dealing with the subject matter of this inquiry to meet the minister’s request. The ACCC has not been provided with any evidence suggesting a likely breach of the Trade Practices Act by any participant in the Australian fertiliser industry.


[2] ACCC says no evidence of law breaking by fertiliser companies, By Libby Price

Tuesday, 26/08/2008

The Australian Competition and Consumer Commission has failed to deliver what farmers want, yet again.

First it was the grocery inquiry. The ACCC said there wasn't enough evidence to prove farmers were being ripped off by supermarkets.

Now it's the fertiliser inquiry. The ACCC has ruled the tripling in fertiliser prices is due to "global supply and demand", and there's little farmers can do about it.

The Australian Competition and Consumer Commission has ruled there's nothing underhand or illegal about fertiliser pricing.

There simply wasn't enough evidence to prove farmers claims fertiliser companies breached the Trade Practices act by overcharging or refusing to supply.

Company Secretary of fertiliser company, Incitec Pivot, Kerry Gleeson said, "I think we're in the middle of a super cycle and when you look back over history super cycles last some thirty odd years typically, so I think we can well see prices at this sort of level for the foreseeable future."

ref:
[1]http://www.accc.gov.au/content/item.phtml?itemId=840441&nodeId=820631956b1278e002159a71e14c7eec&fn=ACCC examination of fertiliser prices.pdf

[2]http://www.abc.net.au/rural/wa/content/2006/s2347123.htm