THE INCREASE OF FERTILIZER AND ANIMAL FEED : WHY?

THE INCREASE of fertilizer and animal feed increase and affedt the food production globally.  A question of why have fertiliser and feed prices risen?. I refer to a report by US Department of Agriculture stated that fertiliser prices have doubled in the last year due to a combination of factors. These include such as War in Ukraine in which prior to Russia’s most recent invasion of Ukraine in February 2022. Reported that Russia and Belarus were responsible for a significant size and proportion of global fertiliser exports. UN Food and Agriculture Organisation data shows that in 2019 in which Russia alone accounted supply for 19% of potassium, 15% of nitrogen and 14% of phosphorous fertiliser exports while Belarus accounted for 18% of potassium fertiliser exports. Reported that although fertiliser imports from Russia are still permitted in the US, UK and many other nations actually the sanctions have disrupted the sale of fertilisers from Russia. Banks and traders have steered clear of Russian supplies and it creating a shortage. Furthermore in the UK has imposed a 35% tariff on Russian fertiliser over and above existing tariffs. This article in "Anim Agriculture Technology" blog I rewrite an issue about the increase of fertilizer and animal feed globally.

Reported on 1 February 2022, Lithuania also halted the export of Belarusian potassium fertiliser (potash) through its port in Klaipeda. Potash is vital for global food security and World Bank figures show that potash prices more than doubled following the export ban. High energy costs: Rises in gas prices have increased the costs of fertiliser production. Ofgem figures show that wholesale gas prices on 26 April 2022 were up 284% in 12 months. Natural gas is used as both a raw material and energy source in fertiliser production. Reported from sources that in late May 2022 that gas now represents up to “90% of the variable costs in fertiliser production”. High global demand and prices for agricultural produce: High prices for some agricultural products have encouraged some farmers to purchase more fertiliser to grow more crops, driving up prices. Statistics from the Department for Environment, Food and Rural Affairs (DEFRA) show that the price index for UK agricultural products increased by 11.8% in the 12 months to March 2022. Figures from the World Bank show that fertilisers are now at their least affordable levels since the 2008 global food crisis following robust demand. A limited supply of materials: Some countries have introduced export bans that have increased global prices further. In 2021 stated that China introduced export controls on fertilisers including nitrogen and phosphate to limit a rise in domestic food prices. Beijing’s move had exacerbated a shortage of global supplies and helped contribute to a surge in global prices. According to Mr Nash, China is unlikely to ease these restrictions this year as it had previously indicated it would. Reliance on fertiliser imports and a lack of competition in the fertiliser industry: The UK produces 40% of its fertiliser requirements. However, one of the UK’s two major fertiliser plants has permanently closed, with its owners having cited high energy bills and  environmental taxes as key drivers behind the decision. In early June 2022, CF Fertilisers shut its Ince manufacturing plant near Chester where production had been suspended since September. The closure of the Ince plant has raised concerns about a lack of competition in the UK fertiliser industry. Imports are farmers’ only alternative to the UK’s one remaining fertiliser plant, also owed by CF Fertilisers.

Animal feed is increasing in cost largely due to the price of sunflower meal (a by-product of sunflower oil), soyabean and wheat. Figures from Our World in Data at the University of Oxford show that in 2019, Ukraine was responsible for nearly half of global sunflower oil exports and Russia and Ukraine combined were responsible for almost two thirds. In addition Russia was the world’s biggest wheat exporter in 2019 and Ukraine the fourth biggest. The majority of global soyabean supplies come from the USA and Brazil in which it is accounting for 69% combined in 2018. Furthermore due to the war in Ukraine has disrupted exports of Ukrainian agricultural produce. Typically, 90% of Ukraine’s grain is exported by sea but these exports have been held up by Russian blockades of Ukraine’s Black Sea coast. Figures from the World Bank show that the cost of sunflower meal increased by 6.4% in the first quarter of 2022 compared to the same period in 2021. On 20 June 2022, wheat prices were also up 56% year on year. This increase in the price of wheat is reflected in the cost of wheat-based animal feed in the UK. AHDB figures show that UK pelleted wheat feed prices rose by around 60% in the 12 months to May 2022. Poor harvests due to drought have reduced soyabean supplies from the USA and Brazil. Figures from the World Bank show that soyabean prices increased by 14.3% in the first quarter of 2022 compared to the same period in 2021. Thanks...

By,

M Anem,

Melaka,

Malaysia.

(December 2024).

Updated on May 2026.