Fertilizer prices hit new highs as Russian invasion ‘exacerbates food shortage’ Farm Policy News

Bloomberg writer Elizabeth Elkin reported yesterday that “Fertilizer prices continue to climb to record highs as Russia’s invasion of Ukraine puts a massive part of the global fertilizer supply under threatadding to concerns about soaring global food inflation.

“The relentless rounding up of fertilizers means no relief for the farmer, the consumer”, by Elizabeth Elkin. Bloomberg News (March 18, 2022).

“The Green Markets North America Fertilizer Price Index jumped almost 10% on Friday to a record high as the market fears that potential sanctions against Russia, a major low-cost shipper of all major types of crop nutrients, could disrupt world trade. The country accounted for almost a fifth fertilizer exports in 2021, according to Trade Data Monitor and Bloomberg’s Green Markets.

Elkin added that “Russia has urged domestic fertilizer producers to reduce exports, further fueling fears of shortages. War is also drive up the price of natural gasthe main input for most nitrogen fertilizers, forcing some producers in Europe to cut the output.”

In a separate space yesterday’s postElkin reported that “Nutrien Ltd.the world’s largest fertilizer company, wants to expand its retail presence in Brazil’s agricultural powerhouse. »

“The company would like to” do more mergers and acquisitions, [Interim Chief Executive Officer Ken Seitz] said in an interview, and further deals in Brazil will be in focus“, says the Bloomberg article.

With regard to the market prices of raw materials, Reuters writer Tom Polansek reported yesterday that “U.S. grain and soybean futures eased on Friday as traders watched diplomatic efforts to end Russia’s invasion of Ukraine and gauged continued disruptions to Black Sea crop exports.

Grain prices have been volatile since the invasionas importers are heavily dependent on supplies shipped from Russia and Ukraine via the Black Sea,” the Reuters article said.

“Crops Slip to End Volatile Week as Supply Outlook Remains Opaque,” ​​by Megan Durisin and Allison Nicole Smith. Bloomberg News (March 18, 2022).

Yesterday too, Bloomberg writers Megan Durisin and Allison Nicole Smith reported that “wheat and corn fell in Chicago, capping a week of up-and-down prices as the war in Ukraine leaves traders analyze increasingly unclear supply prospects.”

Durisin and Smith noted that “[Ukraine’s ] the spring sowing period is also fast approaching, crucial in determining future corn and sunflower harvests. Growers will plant as much as possible, even if yields could fall by a quarteraccording to the Minister of Agriculture Roman Leshchenko. Farmers face damaged infrastructure and shortages of fuel and other inputs.

In related news, Bloomberg writers Michael Hirtzer and Dominic Carey reported yesterday that “the war in Ukraine and the drought in Brazil have global crop importers look to the United States., and the pivot means that the costs of shipping grain and soybeans down the Mississippi River have peaked nearly eight years ago.”

“Costs of Shipping Grain to the U.S. Skyrocket with Oscillating Demand from War and Drought”, by Michael Hirtzer and Dominic Carey. Bloomberg News (March 18, 2022).

In other developments, Reuters editors Gavin Jones and Cristiano Corvino reported yesterday that “Carlo Vittorio Ferrari, who runs a farm 2,000 pigs with his brother near the city of Cremona in northern italyfears his fourth-generation family business could be lost due to conflict in Ukraine.

“The country is a major global supplier of animal feed, with stocks falling rapidly through Southern Europe dependent on imports.

With Hungary, Serbia and Moldova also banning exports as they protect their own supplies, the costs of farms like Ferrari’s have soared, threatening their future. Many face the slaughter of the animals if the situation does not improve quickly.

And the Washington Post Editorial Committee opined in yesterday’s article that “even before Russia launched a full-scale invasion of Ukraine, 2022 was on track to be a year of sky-high food prices, food shortages food and deep hunger in many parts of the world. Today, there is a massive humanitarian crisis in Ukraine, and the impacts of the war reverberate around the world. There will almost certainly not be enough food to feed the world this year. The situation quickly becomescatastrophic,’ with a high probability of famine in parts of the Middle East and Africa, warns the United Nations World Food Programme.

“Catastrophic Hunger,” Washington Post Editorial Board (March 18, 2022).

The Post editorial noted that “in many parts of the developing world, there will be a real risk of starvation and starvationbecause low-income countries don’t have enough money to pay the high food prices. fifty countries depend on Russia and Ukraine for more than 30% of their wheat, and many are among the poorest countries in North Africa, Asia and the Middle East.

Edward N. Arrington