This summer, the United States saw a significant increase in its exports of nitrogen fertilizers as rising natural gas prices in Europe increased the cost of generating the crop nutrient there and made U.S. supplies more competitive, according to Reuters.
The high U.S. sales show how Ukraine’s situation has had a significant influence on the world’s food and energy supplies.
The sanctions imposed on Russia, a major producer of fertilizer and natural gas, both of which are necessary for synthesizing the nitrogen compounds that increase the yields of crops like maize, have made the situation even more critical.
Tight fertilizer supply has driven crop nutrient prices to the point where the United Nations has warned of a “potential availability crisis” this month, and numerous fertilizer facilities in Europe have been forced to close due to high costs, says Reuters.
According to the most recent U.S. Census Bureau data collected by industry association The Fertilizer Institute (TFI) for Reuters, exports from the world’s third-largest producer rose to 370,000 short tons of fertilizer in August, more than doubling the year-earlier amount.
This is the highest monthly total since TFI began collecting statistics in 2013. According to Alistair Wallace, principal of Argus Media in London, European buyers are outbidding domestic buyers in both the United States and other exporters such as Indonesia and Malaysia, declares Reuters.
Despite the spike in exports, additional TFI figures show that the United States nitrogen fertilizer supply was at its second-highest level in a decade as of June, establishing a worldwide dislocation rather than a shortage.
According to Troendle, the countries with the highest year-over-year growth in U.S. purchasing are in Europe (France, Belgium, Norway, and Lithuania), as well as Morocco, Chile, and Brazil.
According to Pekka Pesonen, secretary-general of the European farming association Copa-Cogeca, European farmers cannot stock up on fertilizer as much as they should in preparation for planting next spring due to high prices and scarce supply.
Despite high input prices, growers in the United States may plant even more fertilizer-intensive corn next year.