Economic Aspects of the Regulatory Framework in the Area of Fertilizers

14-04-2017

This study discusses economic implications of the proposed EU regulation on the market of CE marked fertilizers. Depending on the design of the regulation, the costs can be substantial. The expected additional costs of introducing mandatory or voluntary maximum threshold levels for cadmium in inorganic fertilizer are larger than the expected benefits. Measuring cadmium concentration in food in combination with food consumption information seems to be a more cost-effective strategy. Harmonizing the standards for new fertilizing products entering the EU market can increase their supply, support the development of the bio-economy and hence should be enforced. This document was prepared for Policy Department A at the request of the Committee on Internal Market and Consumer Protection.

This study discusses economic implications of the proposed EU regulation on the market of CE marked fertilizers. Depending on the design of the regulation, the costs can be substantial. The expected additional costs of introducing mandatory or voluntary maximum threshold levels for cadmium in inorganic fertilizer are larger than the expected benefits. Measuring cadmium concentration in food in combination with food consumption information seems to be a more cost-effective strategy. Harmonizing the standards for new fertilizing products entering the EU market can increase their supply, support the development of the bio-economy and hence should be enforced. This document was prepared for Policy Department A at the request of the Committee on Internal Market and Consumer Protection.