World fertilizer prices have reached their highest level ever. British analytical company CRU Group notes that the fertilizer price index reached 377. This is significantly higher than the previous record index of 360, recorded in 2008, reports World of NAN with reference to agroxxi.ru.
Since the beginning of this year, the index has increased by 30%, which takes into account data on nitrogen, potassium and phosphates. All fertilizers based on the listed trace elements have risen in price significantly.
Nitrogen broke its price record a few weeks ago, and the price of potassium reached an all-time high just recently. Phosphate is also expected to break a price record in the near future. However, this is not the limit. Fertilizer prices will continue to rise.
Chris Lawson, CRU Group Head of Fertilizers, explained: “Since the start of 2020, nitrogen fertilizer prices have quadrupled, while phosphate and potash fertilizer prices have more than tripled. Farmers in developed markets have benefited from the high prices of agricultural commodities, helping to partially offset the high cost of raw materials. However, a drop in demand for agricultural products is becoming increasingly likely due to high prices and a shortage of supply.
Russia is a key exporter of three products listed in the price index, and while trade with the country has not completely stopped, it has slowed significantly as part of the international response to the conflict in Ukraine.
A prolonged period of under-application of fertilizers due to difficulties in procuring fertilizers will affect yields and tillage in the long term, Lawson said, potentially leading to food price inflation.