With rising prices of grain and the Disruptions in the Supply chain that the Global Export industry has been facing recently, it’s actually no wonder that the world is Facing a Global shortage of nitrogen fertilizers.
For the time being, nitrogen fertilizer supplies in the United States are sufficient for applications before winter, according to Daren Coppock, CEO of the Agricultural Retailers Association in the United States. Fertilizer use now will assist farmers to lessen their spring workload.
However, because fertilizer prices have risen so dramatically, some farmers are postponing purchases, creating a supply shortage during their busiest season, according to Coppock.
Delaying fertilizer purchases until spring, on the other hand, risks adding to supply chain congestion as farmers scramble to apply fertilizer and plant seed within a narrow window. This might in turn lead to a drop in Production of Farm produce and hence might even play a vital role in increasing its prices in the United States.
Fertilizer costs were higher in 2008, according to Josh Linville, director of fertilizer for Stone X Financial Inc. in Kansas City, Missouri, but the 2021 issue is an unprecedented worldwide scarcity.
“This is vastly different,” he said. “Because it doesn’t matter what you’re willing to pay, you can’t get the product.” This is actually because of a mix of higher Grain prices along with complex supply chain disruptions faced by the world as a whole due to the pandemic.
All these are actually the primary reasons behind the rising cost of Fertiliser and could also translate to higher food prices.
According to the statement given by agricultural economist John Beghin of the University of Nebraska to Ag Web, “Right now, we have an almost a perfect storm of high energy prices, China cutting its production because of higher energy prices, as well”.
