The world’s largest fertilizer manufacturer sees two years of high prices
Another piece of bad news for farmers is that a fertilizer, which is vital to crop production around the world, will remain expensive for at least two years.
So says CF Industries Holdings Inc., the world’s largest nitrogen fertilizer company. Prices have skyrocketed as the war in Ukraine threatens a large chunk of the world’s fertilizer supply as Russia is the largest producer.
Production costs are also skyrocketing as inputs such as European natural gas increase due to potential fuel shortages. All of this is adding to concerns about food inflation as fertilizer shortages could lead to lower harvests.
But CF doesn’t see growers shying away from buying, particularly in the U.S., said Bert Frost, senior vice president of sales and market development.
“We don’t see any destruction of demand,” Frost said at a conference in New York last Wednesday. “We’re seeing a shift in demand.”
This is because Irish fertilizer sales are reportedly significantly lower, particularly to drywallers.
A Teagasc survey of nearly 1,000 drywall farmers found nearly half had not applied N to pastures by mid-April.
Fertilizer. In the west of Ireland in particular, there is no intention to move away from traders and cooperative farms, where farmers are reluctant to pay high prices.
A recent update from the IFA National Council outlined that affordability, rather than availability, appears to be the top concern when it comes to fertilizers and that availability is of growing concern towards the end of the year and into 2023. The IFA has called for a complete inventory of the available stocks.
https://www.independent.ie/business/farming/news/worlds-top-fertiliser-maker-sees-two-years-of-high-prices-41680640.html The world’s largest fertilizer manufacturer sees two years of high prices