US The Fertilizer Institute expresses concerns over Russia-Ukraine conflict
HOUSTON (ICIS)–The Fertilizer Institute (TFI) said it is concerned about the destabilising situation occurring in Ukraine, with the industry group adding that their main concern is the safety of all the citizens that are potentially in harm’s way.
TFI said it is currently unclear how great the conflict impact will eventually be and how it will affect the already-tight global market for fertilizer, but it feels certain that this event will add additional pressure on a market that has already experienced many challenges over the last 18 months.
“It has been implied that fertilizer companies may take advantage of the current situation, but that is far from the truth. The US fertilizer industry is committed to serving farmers and makes it unequivocally clear that ensuring grower access to the nutrients needed to sustain people around the world is of the highest priority,” said TFI in a statement.
“Because 90% of all fertilizer used is consumed outside the US, the actions of Russia will impact the global market for fertilizer around the world. Russia is the second largest producer of ammonia, urea and potash, and the fifth largest producer of processed phosphates.”
The group noted that in terms of the global export market, Russia accounts for 23% of ammonia, 14% of urea and 21% of potash, as well as 10% of processed phosphate exports.
“The conflict in Ukraine will also put additional stress and uncertainty on energy markets. Russia supplies approximately one-third of Europe’s natural gas, the main feedstock to produce nitrogen fertilizers,” TFI said.
“Because of Russia’s large fertilizer production and its role as a global fertilizer supplier, the removal of Russian product from the global marketplace will have an impact on supply.”
TFI added that despite the benefits afforded by a robust domestic industry, the bottom line within the fertilizer marketplace is that the prices across the world for crop nutrients are driven by global supply and demand factors.