As sanctions bite Russia, fertilizer shortage imperils world food supply

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Sky-high fertilizer prices have farmers worldwide scaling back its use and reducing the amount of land they're planting, fallout from the Ukraine-Russia conflict that has some agricultural industry veterans warning of food shortages.

Western sanctions on Russia, a major exporter of potash, ammonia, urea and other soil nutrients, have disrupted shipments of those key inputs around the globe. Fertilizer is key to keeping corn, soy, rice and wheat yields high. Growers are scrambling to adjust.

Some growers are contemplating switching to crops that require fewer nutrients. Others plan to cultivate less acreage. Others say they'll simply use less fertilizer, a strategy crop experts predict will hurt yields. Production is most at risk in developing nations, whose farmers have fewer financial resources to weather the storm, said Tony Will, chief executive of Illinois-based CF Industries Holdings, a leading producer of nitrogen fertilizer.

Sanctions have disrupted sales of fertilizer and crops from Russia. Many Western banks and traders are steering clear of Russian supplies for fear of running afoul of the rapidly changing rules, while shipping firms are avoiding the Black Sea region due to safety concerns.Russia and Ukraine are major grain producers. Together they account for about 30% of global wheat exports and 20% of corn exports. Grain shipments through the Black Sea have already been disrupted.

In the west-central state of Mato Grosso, farmer Cayron Giacomelli told Reuters he has already reduced fertilizer use on his current corn crop. He said he'll do the same when he plants soybeans later this year, a move he reckons might shrink his harvest by at least 8%. It's the same in rural Kenya. Farmer Mary Kamau said she, too, has slashed purchases of commercial fertilizer and is using manure to nourish the coffee and avocados she grows on 12 acres in Murang'a County. She worries about the consequences for her family.

 

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Given that China is by far the country with the largest production, with an output of 28.9 million metric tons of nutrient, and followed by the United States and India, with 13.6 and 13.3 million metric tons produced, respectively, there are indeed supplier options.

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