Fertilizer sanctions split the farm Superpower as food prices soar

The world’s agricultural superpowers are divided over whether Russian fertilizers should be sanctioned as soaring prices threaten to further fuel food inflation.

razil, a leading exporter of everything from soybeans to coffee and sugar and the largest importer of fertilizers, argues to keep crop nutrients unpunished for food security . The United States, on the other hand, is inclined to heighten its response against Russia.

“Perhaps sacrifice is needed to resolve the absurd war that Russia has chosen to start,” said US Agriculture Secretary Tom Vilsack during a virtual event hosted by the United Nations Food and Agriculture Organization on Tuesday. Wednesday.

While sympathizing with those struggling to find affordable fertilizer, Vilsack said action was needed when Ukraine’s democracy was under siege. The USDA has attempted to reduce the impact of higher costs through an effort to reduce the use of plant nutrients.

To be sure, the US is also a major fertilizer importer, bringing in nearly all of its potash needs from Canada, according to Alexis Maxwell, an analyst at Bloomberg’s Green Markets. About a third of the nitrogen used in the US comes from abroad, mostly the Middle East and Russia. Regarding phosphate distribution, shipments came from Saudi Arabia and Australia.

But no country is more dependent on foreign products than Brazil. The South American country supplies more than 85% of its fertilizer needs, with an import dependency of more than 90% for potassium and nitrogen. Russia, the main supplier, and Belarus, which is also under economic sanctions, account for a combined 28%.

“Restricting fertilizer consumption can hurt crop yields, fuel inflation and threaten food security,” said Brazil’s Agriculture Minister Tereza Cristina. “We cannot create a bigger problem by exacerbating global hunger.”

She is participating in a series of meetings with authorities from fertilizer producing countries to ensure the country’s supply. Canpotex, a joint venture that markets potash for Nutrien Ltd. and Mosaic Co. outside of North America, aims to increase sales to Brazil.

Agricultural leaders from IICA (Inter-American Institute of Agricultural Cooperation) countries supported Brazil’s proposal during Wednesday’s meeting, which also included Uruguay and Paraguay. Vilsack represents manufacturers from North America.

Bloomberg.