Soaring global food prices push up fertilizer market prices

Fertilizer prices have risen sharply in recent months, following the rise of the global grain market, but fertilizer prices may not hit the 2008 high, as producers are well prepared for rising demand.

According to Reuters, Calum Findlay, a British GleadellAgriculture trader, said, “I think fertilizer prices will not be close to those figures for the 2008 high. I think this is only the case.” And added that the surge in demand in 2008 made manufacturers unprepared.

He pointed out: "Since then, fertilizer production capacity will increase and follow-up will be strengthened."

Analysts said that production capacity has increased since prices rose in 2006-2008. The new fertilizer project will be put into production and the delivery time will be between 3-5 years.

The rise in grain prices has stimulated farmers to use chemical fertilizers to increase input to increase production. They also increased the crop area. The US corn planting area this spring is expected to reach the second highest level since World War II.

Despite this, analysts and producers said that there is limited room for growth in fertilizer prices this year.

The occurrence of ** in North Africa and the Middle East last month has given fertilizer prices some support. North Africa and the Middle East are the main producing areas due to their low energy costs.

Ken Bowler, marketing manager of British Fertilizers manufacturer GrowHow, said that the production of chemical fertilizers such as pesticides requires large amounts of energy, and natural gas accounts for more than 70% of production costs.

European producers face more stringent environmental standards.