The yr 2021 was an over-the-top one . plant food prices for greenhouse grower rise by more than 40 % . The oddment does not seem to be in ken either , warn fertilizer maker Yara . This year has begin with significant fertilizer damage increase . On its website , Yara share this explanation of how these prices have come about .
The rising gas price , the Chinese grocery , eminent container fees , and sanctions against Belarus all bestow to these climb prices . As does the worldwide pandemic . All these factors bring about rising cost prices , and shift in supply and demand in the world market .
extraneous constituent influence higher cost priceGas prices have a major impact on the cost price of ammonia production , an energy - intensive process . Nitrogen fertilizers use ammonia as a raw material . It thus dramatically affect these plant food ' price . Extracting phosphate from phosphate John Rock also requires much vim . On top of that , the zip securities industry is not yet showing a confident trend either . Russia ’s gas supplying remains low . Also , demand rose with the frigid weather in former December . So , both gas and electricity prices rise , leading to increased price Mary Leontyne Price .
Logistical cost climb due to rise container ratesRising logistic cost are affecting the price damage too . Current container rates are almost triple those of a year ago , and not only are ocean , but also road transport cost are increasing . Those are due to stave shortages and higher fuel prices .
large global requirement for fertilizerGlobal provision and demand also determine fertilizer toll . China ’s local indigence for chemicals and fertiliser continues to grow . That is direct to increase consequence requirement . The Taiwanese government is increasingly restricting export too . Producers elsewhere have to now adsorb these decreased Chinese export volumes . As a result , far less phosphate is available on the world market .
Belarus is the world ’s top potassium hydroxide producer . Due to political developments , imprimatur against this country are imminent . These already exist against some other Eastern European land . The supplying is , thus , decreasing while need is increase . That is partially because there is less nitrogen and phosphate on the grocery .
Also , high ocean cargo container fees imply it is no longer profitable to import comparatively inexpensive plant food from Asia . Demand for this product remains high in countries like India , South Korea , and Brazil . This shift from supply to demand is hiking prices up .
Pandemic is limiting atomic number 16 productionAnd then there is COVID-19 . This , too , work a vital role in pricing . Some fuel production process vent sulfur as a byproduct . The pandemic has reduced worldwide transportation movements . Therefore , less fuel is being produced , shorten the supplying of sulfur products .
The highly transmittable Omnicron COVID-19 variant is bear to further interrupt logistic chain . The International Transport Workers ' Federation ( ITF ) is already talking about an " Omicron crew compaction " for the shipping industriousness .
A perfect stormIn short , all these factors impact the price of all introductory fertilizer components ( nitrogen , phosphate , and potash , or NPK ) otherwise . In the yesteryear , one element ’s Leontyne Price would rise , and another ’s would go down . However , due to this conflux of setting , all components ' cost are rise across the circuit card . And there is no mark of a price decrease either .
For more data : YaraWebsite : www.yara.com
