Citing three key factors in today’s fertilizer markets, The Mosaic Company says it recognizes fertilizer prices have increased dramatically in the past several months.
“We frankly empathize with the conundrums facing ag retailers and their customers-the growers,” says Andy Jung, Director, Market & Strategic Analysis at Mosaic. “Costs have escalated dramatically. There have been shipping delays. We talk to them regularly and understand the challenges across the input supply chain.”
As the leading suppliers of phosphate fertilizers in the U.S. (a little over 50%), the company says supply disruptions have accelerated the increasing pricing momentum in 2021, however, Jung points out that’s still below the 2008 peak.
“In the fall of 2019 and the spring of 2020, farmers were looking at the lowest priced fertilizer in over a decade, and now 18 months later it’s some of the highest prices they have seen in a decade,” Jung says. “We just bypassed the average and we bookended the extremes on both sides in a short amount of time-it’s jarring.”
Mosaic points to three factors driving up fertilizer costs.
1. Fertilizer demand follows commodity prices
2. The cost of fertilizer production has increased
3. Trade and supply disruptions continue to reshape the market
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