"If fertilizer prices continue to go up and commodity prices continue to stay where they're at, then that really takes away our profitability. With every crop you plant, you need fertilizer. We know in the future we're going to need fertilizer again, right?"
"Josh Linville, an analyst for financial services firm StoneX, says about one-third of global urea fertilizer exports passes through the Strait of Hormuz, located between Iran and the Arabian Peninsula. Threats from Iran's military against Western vessels has effectively brought shipping through the strait to a halt in the days since the war broke out."
"Even though Canada produces its own fertilizer supplies, buyers here are still subject to global commodity prices. It's similar to the current spike to international oil prices having impact on Canada's own crude and gasoline prices."
Fertilizer prices, particularly urea, have skyrocketed following military conflict in the Middle East that disrupted critical shipping routes. About one-third of global urea exports pass through the Strait of Hormuz between Iran and the Arabian Peninsula. Military threats have halted shipping of oil, liquefied natural gas, and fertilizer from the region. Canadian farmers face rising costs despite domestic fertilizer production because global commodity prices affect local markets. While food prices haven't immediately increased like gas prices did during oil disruptions, experts warn impacts could emerge in coming months if the conflict persists. Farmers worry about future profitability as input costs rise while commodity prices remain stagnant.
#fertilizer-prices #middle-east-conflict #supply-chain-disruption #agricultural-economics #global-commodity-markets
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