WILLAGRI
Recent tensions in the Middle East are a reminder of the risks to global supplies of fertilizers, especially urea, a crucial nitrogen fertilizer for agricultural crops. Tensions in the Middle East underscore the concentration of global fertilizer supply chains, with nearly 50% of urea shipments coming from this region. Analysts warn of potential impacts on prices and availability, especially for farmers in the U.S., Brazil and India who rely heavily on imports. Brazil imports more than 90% of its urea, and the current tensions have driven up prices in the country. Geopolitical conflicts and supply chain shocks, such as the. Ukraine-Russia war in 2022 and the global pandemic, have led to extreme fluctuations in fertilizer prices in recent years. Conflicts, such as the Ukraine-Russia war, have already caused food inflation and pressure on farmers. American farmers should expect inflation in fertilizer costs for the next season.
Source : Bloomberg