why is there a fertilizer shortage?
In: 2
Making artificial fertilisers takes a lot of energy, about 1-2% of the world energy consumption. So fertiliser prices is directly related to energy prices. With a high energy price the fertiliser price is also high and a lot of fertiliser plants have shut down. In addition to energy the most cost efficient way to produce fertilisers use natural gas, about 3-5% of the extracted natural gas in the world. One of the biggest natural gas extractor in the world is Russia but exports from Russia have been limited for the past 18 months. This have created a shortage of natural gas driving the prices up. Even in the US the natural gas is being exported to Europe rather then sold locally. So again fertiliser plants shut down because they can not buy natural gas at a price which the farmers can accept.
Latest Answers