WILLAGRI
The shortage of fertilizer is leading to a drop in production, which could further increase food prices, which have already risen by more than 30% in one year.
This is in addition to the increase in transport costs and the reduction in certain productions affected by climatic events.
Breeders must also pay more for feed for their livestock and pass on this additional cost to consumers.
Farmers may switch to crops that require less fertilizer, such as soybeans or lentils. A trend that could reduce corn acreage by almost 3% by the end of the year.
Ammonia, for example, has risen from $200 to $594 in one year due to a voluntary slowdown in its production. This is due to the fact that the cost of manufacturing ammonia has become uncontrollable due to the increase in the price of natural gas, which is used in its manufacture.
Source : Korii