The Impact of the Situation in Ukraine and Russia on Global Fertilizer Raw Materials

According to public information, Russia is an important potash fertilizer producer and exporter in the world. In 2020, Russia will produce about 13.5 million tons of potash fertilizer, accounting for about 20% of the global potash fertilizer output, and export about 10.84 million tons of potash fertilizer, accounting for about 19% of the global potash fertilizer trade volume.

Affected by the situation in Ukraine recently, the price of potash fertilizer has fluctuated. That considering that Russia and Belarus' export volume of potash fertilizer accounts for 40% of the global export volume of potash fertilizer, Brazil and India are the main demanders of fertilizer, and the impact of the situation in Russia and Ukraine on the rising cost of fertilizer cannot be ignored.

On the 14th local time, Russian fertilizer and coal billionaire Andrei Melnichenko said that unless the current situation can be stopped, a global food crisis is imminent, because fertilizer prices have soared so fast that many Farmers can no longer afford it.

Melnichenko founded Eurochem, whose product line covers nitrogen fertilizers, phosphate fertilizers, compound fertilizers, as well as organic chemicals and iron ore businesses. It is one of the largest fertilizer companies in Russia and one of the top five fertilizer companies in the world.

Earlier on March 10, the Russian Ministry of Industry said it would ban the export of fertilizers to "unfriendly" countries and regions. Then global fertilizer prices started a new round of rising.

The price of urea, an important nitrogen fertilizer, has more than tripled in the past 12 months, according to the latest data from the Food and Agriculture Organization of the United Nations (FAO).

Svein Tore Holsether, president of fertilizer giant Yara International Group (Yara), also recently said that the current record high natural gas prices have forced the group's ammonia and urea production in Europe to be reduced to 45% of the original capacity. .

Holst also said a knock-on effect would be felt in the global food supply due to reduced supplies of the two basic fertilizers.

In a recent article on the situation in Ukraine, the FAO stated that more than 50% of the fertilizer supply in some countries in Europe and Central Asia comes from Russia, and the supply shortage may continue into next year.

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