Both Russia and Ukraine are major fertilizer exports, with Russia being the world’s top fertilizer expert. As a result of the war between them, both nations are unable to bring their fertilizer to the market. As a result, fertilizer prices are spiking as supply is failing to meet demand. As usual, the nation-states that have the least will be the hardest hit.
U.S.-led sanctions against Russia have left the Russians unable to realistically bring their fertilizer to market, while the war has halted Ukraine’s fertilizer production, along with most other agricultural production, which has world consequences of their own. As these effects hit the nations of the world least equipped to make up for these losses, expect to see more riots, protests, political upheavals as the less powerful in these nations find themselves increasingly unable to feed themselves.
Soaring Fertilizer Prices Threaten Widespread Hunger, Higher Inflation
From www.businessinsider.com
2022-04-10 12:40:51
Excerpt:
In an era of abundant economic worries, the chaos in the world’s fertilizer market is one of the most concerning.
The war in Ukraine has boosted already high fertilizer prices. Russia serves as the world’s top fertilizer exporter, selling some $7.6 billion worth of fertilizer in 2020, according to data from the French research organization CEPII. Russia’s invasion of Ukraine slammed both countries’ abilities to trade, and in early March the Russian government called on fertilizer producers to suspend exports entirely.
The new supply pressures have lifted prices at a stunning clip. The Green Markets North America fertilizer-price index — which tracks the costs of urea, potash, and diammonium phosphate — has soared by 42% since the invasion began in late February.
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