Fertilizer shortages are spreading throughout the world, starting in Ukraine as a result of the Russian invasion, leading to a price spike of 70 percent in less than one year.
Can the world feed itself? Historic fertilizer crunch threatens food security | AP
From denvergazette.com
2022-05-02 09:36:17
Excerpt:
For the first time ever, farmers the world over — all at the same time — are testing the limits of how little chemical fertilizer they can apply without devastating their yields come harvest time. Early predictions are bleak.
In Brazil, the world’s biggest soybean producer, a 20% cut in potash use could bring a 14% drop in yields, according to industry consultancy MB Agro. In Costa Rica, a coffee cooperative representing 1,200 small producers sees output falling as much as 15% next year if the farmers miss even one-third of normal application. In West Africa, falling fertilizer use will shrink this year’s rice and corn harvest by a third, according to the International Fertilizer Development Center, a food security non-profit group.
…..“Fertilizer prices are up an average of 70% from last year,” said Timothy Njagi, a researcher at the Tegemeo Institute of Agricultural Policy and Development in Kenya, referring to prices in the country. “The fertilizer is available locally, but it’s out of reach for the majority of farmers. Worse, many farmers know that they cannot recover these costs.”
Prices have been climbing for more than a year for a host of reasons: runaway pricing for natural gas, the main feedstock for much of the world’s nitrogen fertilizer; sanctions on a major Belarusian potash producer; back-to-back late-summer storms on the U.S. Gulf Coast that temporarily shut-in production in the region; plus Covid-19 restrictions that have disrupted every global supply chain, including chemicals.
That tightening in the physical fertilizer market has galvanized China, the largest phosphate producer, to restrict outgoing shipments in order to build up a stockpile at home, further exacerbating the global shortage. Add Russia’s invasion of Ukraine, which effectively cut off nearly a fifth of the world’s nutrient exports, and the fertilizer industry and its pricing mechanisms are arguably more broken than ever before.
