Editorial Comment

In the United States, the nitrogenous-fertilizer price tripled between 2000 and 2008. During the same period the U.S. production of urea and ammonia dropped by about a third. As a result, the U.S. has switched from being a net exporter of fertilizer to a net importer. In particular, the U.S. now imports over 50 percent of its nitrogen overall, including 70 percent of its supply of dry urea.

Combine the requirement to import fertilizer with the dollar’s 40 percent devaluation and a doubling in freight costs, and the idea of altruistic fertilizer aid from the U.S. becomes nothing short of laughable.

The news below sounds rather good for Haiti doen’t it? Practically socialistic. There is no doubt in this case that the low prices will be enforced. Nevertheless, this MOU between the Haitian government and Haiti’s rich USAID-subsidized fertilizer importers is a bargain with the devil.

Haitian farmers have been given hybrid Monsanto seeds that require high inputs to give their advertized yields. The fertilizer is cheap now that it is being subsidized. Traditional farmers will be unable to compete with the hybrids’ success and get rapidly driven into bankruptcy. After the well-adapted native strains have vanished, the fertilizer will cost its full price, and those who chose what appeared to be the easier way will need a ticket for that boat journey too.

Dady Chery, Editor
Haiti Chery

 

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The government sets the price of fertilizer

By Staff (TB)
Haiti Libre

This Monday, June 25, 2012, the Haitian government and a group of local importers of fertilizers, signed a Memorandum of Understanding (MOU) to fix the price of fertilizer. Thus a bag of fertilizer for farmers should not exceed 900 gourdes ($21), or the sulfate 550 gourdes ($13). To arrive at these prices, it’s about 260 million gourdes ($6 million) in subsidy, that the government will provide out of state coffers.

Thomas Jacques, the Minister of Agriculture, Natural Resources and Rural Development explained

“The Government had decided to make a big effort for the recovery of agricultural production, and it made its contribution so that the price of fertilizer, which was 1,500-1,600 gourdes ($35 to $37), depending on the place, is since the signing of this MOU, a maximum of 900 gourdes.

“This means that from today, on the whole territory of the Republic of Haiti, Pont Sondé, Croix-des-Bouquets, in the South, Jérémie… regardless of the location, fertilizer prices will not exceed 900 gourdes. With the exception of the price of sulfate which may not exceed 550 gourdes.

“This is a big decision that the State has taken to help relieve farmers. Today, following this first agreement that I made with local importers, the Ministry will go into all areas of productions to broadcast and publicize this information.

“Agents will be identified: associations or credible traders, who agree to undertake to sell the fertilizer at the price fixed by the State…. We will, in collaboration with the Deputy Minister in charge of the promotion of the peasantry, Marie Mimose Félix, send agents, who will go into all the areas of production, in all markets to ensure that the decisions I have just taken, are respected. We will take all legal measures against all those who violate these prices.”

Source: Haiti Libre