Expect a worsening food crisis as the war in Ukraine disrupts global fertilizer markets, while extreme weather events around the world hinder food production.
- Food crisis will intensify next season as crop production threatened
- Farmers delay fertilizer purchases in hope of lower prices
- Expect supply chain crunch if farmers all order at once
- Bad weather has hit crop production globally
- Lack of financing for farmers to purchase fertilizers
- Food price inflation will suck money from consumers’ pockets
- Likely to depress demand for non-essential goods, hitting chemicals demand
- Russia produces almost one fifth of global phosphate supply
- Tight supply has pushed phosphate prices to record levels
- Urea prices hit records as war began but declined as Russia found other markets
- But urea prices are still 75-80% higher year on year and may remain elevated