The world’s top fertilizer manufacturers are seeing supply disruptions that have plunged the market into chaos likely to extend beyond 2022.
Ertilizer prices have soared to all-time highs as Russia’s invasion of Ukraine and sanctions on Belarus disrupted much of the world’s supply. The sanctions have the potential to have longer-lasting effects as it will take time to rebuild the region’s export capacity and buyers seek supplies from alternative sources, said Ken Seitz, chief executive officer of Nutrien Ltd.
Nutrien, the world’s largest fertilizer company, “is evaluating the potential to accelerate our ramp-up of potash production,” Seitz said during a conference call with analysts on Tuesday. Disruptions “could continue well beyond 2022”.
The isolation of Russia and Belarus from the global trade in fertilizers, even if it turns out to be temporary, could reshape the market and increase uncertainty about security of supply, he added.
“Could this change the global trade pattern? We think that’s possible,” Seitz said in a telephone interview.
The Canadian company has previously announced that it will increase potash production by about 1 million tonnes to 15 million this year, with most of the additional volume coming in the second half. According to Nutrien, Russia and Belarus account for around 40% of global potash production and exports.
Mosaic Co. also expects the potash market to be extremely tight for the foreseeable future.
“Maybe it’s going to be a two-year problem, and even then it’s going to take two to four years to catch up on the deficit,” Chief Executive Officer Joc O’Rourke said during a conference call Tuesday.
https://www.independent.ie/business/farming/news/farming-news/fertiliser-giants-warn-supply-snarls-to-linger-beyond-this-year-41612904.html Fertilizer giants warn supply difficulties will continue beyond this year