Global fertilizer supply will be in short supply

The United Nations Food and Agriculture Organization said recently that as tensions between Russia and Ukraine intensify, global fertilizer supplies may be in short supply, pushing up the production cost of grains and other crops and causing food prices to rise
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Market participants expect that demand for fertilizers for crop production in developed countries will continue to remain high this year, potentially leading to shortages in fertilizer supplies in emerging economies and developing countries

Russia, Ukraine and Belarus are all major fertilizer producers
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In particular, Russia is an important supplier of nitrogen, phosphorus and potassium fertilizers

Since natural gas is the main raw material for nitrogen fertilizer production, and Ukraine, which relies on Russia for natural gas supplies, may face a crisis, if the disagreement with Russia further intensifies, Ukraine's fertilizer industry will be in trouble
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Belarus, which ranks third in the world after Canada and Russia, is also sanctioned by the West in terms of the production of the three-element potassium fertilizer, but the supply of potash fertilizer from Belarus will not cause a serious global shortage for the time being

The International Fertilizer Industry Association (IFA) predicts that global fertilizer consumption in 2022-2023 will decrease by 3.

FAO expert Josef Schmidhuber pointed out that shortages of nitrogen and phosphorus derivatives are expected in the northern and southern hemispheres in the second quarter of this year, and if these fertilizer prices remain at current levels, fertilizer demand will decline in 2022-2023