THE Ministry of Agriculture started a new round of discussions with local fertiliser producer Newport Fersan (Jamaica) Limited Wednesday, which will form the basis of a submission to Cabinet on Monday, on fertiliser price options.

Agriculture Minister Dr Christopher Tufton on Wednesday confirmed that he and a ministry team had begun discussions with the company's manager, John Allen.
"I am going to Cabinet on Monday to discuss a range of options for the government to pursue as it relates to the fertiliser issue," the minister told the Observer last night.

Fertiliser price has jumped from $46,000 per tonne last September to $113,000 per tonne this month, primarily due to increases in the price of urea - a petroleum-based ingredient. But there is some concern that the increases locally may be over-reflecting price increases in raw materials.

On Tuesday, both Prime Minister Bruce Golding and Opposition spokesman on agriculture, Roger Clarke, expressed concerns about the local price in the House of Representatives.

Golding - who was updating Parliament on his recent visit to Maracaibo, Venezuela, for the PetroCaribe summit - announced that the state-owned Venezuelan company Petroquimica had undertaken a five per cent discount on the price of urea. However, Venezuela has agreed to make available to PetroCaribe member states 100,000 tonnes of urea per annum at a discounted price of 40 per cent of prevailing market price.

"As to what impact the 40 per cent discount plus the five per cent removal of user fees will have, it is difficult for me to pin that down," Golding said.

He said that while energy and security costs in Jamaica may be higher than in the Dominican Republic where Newport Fersan's parent company - Fersan Fertliser Company - is located, the local price still did not add up.

"I am going to have to be satisfied that the price of locally manufactured fertiliser needs to be twice that of fertiliser imported from the parent company into other Caribbean countries, that are even further away from Dom Rep than we are. It does not make sense," Golding said.

He said that he has instructed Dr Tufton and Minister of Industry, Investments and Commerce, Karl Samuda, to conduct a thorough analysis of the current pricing structure of locally-blended fertiliser.
"The ministers understand from me that I want a clear answer, and in the absence of a clear, satisfying answer, I am going to take the necessary steps to protect the local farmers," the prime minister warned.

He added that the Dominican Republic seems to have a lock on fertiliser inputs within the region.

"It is virtually impossible for you to purchase a tonne of fertiliser out of Trinidad, because virtually all of their raw material are already the subject of supply contracts with the Dominican Republic. It is something that we are going to be exploring very actively, and I hope to have a definitive position on it (from the) ministers within a week," he added.

Opposition spokesman on agriculture, Roger Clarke, said that the Government had his full support in calling for an inquiry.

Clarke said that when the previous Government approached Newport Fersan on the price, their response was that the price of the raw material was the same as in the Dominican Republic, as they had the same source.

"And, as you said, the only difference would have been other costs. But, I don't believe that the other costs would have reflected a price double what we are getting and, therefore, I support you totally in moving forward in that direction," Clarke said.

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