Fertilizer Shortage Increase Fears for High Food Prices in North America

Agriculture

According to the reports, a global shortage in the nitrogen fertilizer has been responsible for driving the prices of the food to the record levels, along with prompting the farmers of north America for delaying the purchases and increasing the risk of a spring scramble for applying the nutrient of crop before the planting season.

The farmers mostly apply the nitrogen for the purpose of boosting the yields of corn, wheat, and canola, and the high costs of the fertilizers can possibly translate it into the high prices of the bread and meat across the region of North America.

According to the United Nations (UN) food agency, the global food prices have hit a record high in 10-years in October 2021, which has been led by the continuous increase in the crops of cereals like vegetable oils and wheat.

The Hurricane Ida and Texas Arctic Blast has also disrupted the production of the fertilizer in the United States, and after that, the prices of the natural gas, which has been a key and important input in the process of manufacturing nitrogen has been increased because of the high demand and also allowing the low supplies. The global of prices of Urea had also been at the top for 1,000 dollars a tonne for the first time.

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Daren Coppock, CEO of Agricultural Retailers Association based in US said, in the country, the supplies of the nitrogen fertilizer have been adequate for the applications before the winter season, and applying the nitrogen fertilizer before the winter season decreases the spring workload of the farmers.

Sandy

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