The Irish Co-Operative Organisation Society (ICOS) has called for a "comprehensive support package" to reduce higher fuel and energy costs.

ICOS president Edward Carr said he has written to Minister for Agriculture, Food and the Marine Martin Heydon to "urge immediate steps" by government to ensure food security in light of the conflict in the Middle East.

The organisation is calling for, among other things, the "immediate suspension" of the Carbon Border Adjustment Mechanism (CBAM), which is effectively a tax on carbon intensive products entering the EU, including fertiliser.

He said that the closure of the Strait of Hormuz, a key shipping lane in the Persian Gulf, is "not only a threat to global energy security but equally threatens global food security".

"The Middle East region is a key player in the global fertiliser trade, accounting for 30% of exports of all major fertilisers," Carr said.

"Over one-third of urea; one-fifth of ammonia and ammoniated phosphate; and half of the sulpher produced globally is exported through the Strait of Hormuz," he explained.

"We have seen significant pressure on fertiliser availability and cost in recent weeks, with average urea costs increasing by €200/t and other fertilisers by €100-150/t," Carr added.

According to the ICOS president, some fertiliser suppliers have been forced to withdraw their prices due to the significant market volatility.

He also cited a warning from the International Fertiliser Association, which said that "if disruptions to energy and feriliser trade routes persist, the impacts will be felt most strongly in countries that depend on imported fertiliser".

Carr said: "Ireland is exposed as a significant importer of fertiliser, and due to our seasonal production system.

"The introduction of the definite phase of the Carbon Border Adjustment Mechanism (CBAM) from January 2026 is having a huge impact on cost and availability," he said.

Before January, CBAM was in a monitoring phase, where fertiliser imports were monitored. From the start of the year though, importers have been required to pay to receive a certificate for their imports.

According to Carr, the cost of CBAM on non-EU CAN (calcium ammonium nitrate) is approximately €120/t, which he called "a prohibitive cost".

He also said that an agreement at EU level earlier this year to reduce tariffs on some fertiliser imports in order to offset the cost of CBAM "will have little or no impact".

He also said that a proposed temporary suspension of the CBAM, which is currently going through the EU's legislative procedure, will take "several months" to come into effect unless the process is expediated.

Carr said that provisions under the EU treaties should now be invoked to suspend the CBAM immediately, saying this approach will "assist with alleviating the impact on cost and availability".

"Excessive input cost inflation experienced since 2022 remains a significant challenge for the agri-food sector," he added.

"Against the backdrop of downward pressure on output prices, further increases in farm level costs are deeply concerning," the ICOS president said.

"Consequently we also call on the Irish government to bring forward a package of supports, similar to the emergency measures introduced in 2022, to help lessen the impact of higher energy and fuel costs caused by the conflicts in the Middle East," Carr added.

He said: "We call on the government to support the immediate suspension of CBAM on fertiliser and to bring forward a comprehensive support package to reduce the higher fuel and energy costs."