TFI Economist Says Geopolitics Could Drive New Fertilizer Innovation Amid Supply Chain Disruptions

The chief economist for The Fertilizer Institute (TFI) says she expects to see more product innovation as geopolitics continue to interrupt supply chains.

Veronica Nigh told Brownfield Ag News that it could mean turning to different nutrients like ammonium sulfate and Triple Superphosphate (TSP).

“We’re seeing that experimentation in other parts of the world, and that might be a thing to consider as we’re seeing increased volatility, as we’re seeing those big trading partners being in and out of the market in substantial ways and year after year, that might be something that deserves additional attention,” she shares.

Nigh says China restricting fertilizer exports this year will likely keep supplies unstable for the upcoming growing season. China produces about 40 percent of processed phosphate and 30 percent of ammonia and urea used globally.

EDITOR’S TAKE:

The old saying “necessity is the mother of invention” appears to apply to the fertilizer industry. But it even goes beyond that, with biotechnology researchers seeking more ways for plants to generate their own nutrient requirements. We also should keep a close eye on our relationships with Canada, since they are a major source of phosphate for fertilizer. Tariffs and tensions between the two countries could become a major factor in determining what happens to fertilizer prices in the future.

Despite this report, some fertilizer industry experts are predicting stable to slightly lower prices this year. If that is the case, margins on crops like corn, soybeans, wheat, rice, and cotton could improve. Either way, it is a good idea to keep your inventory on AgTruckTrader.com®. Farmers/ranchers replace a lot of trucks every single year and they do look at AgTT to see if you are a CAD member and what you have to offer.