AUDIO: Veronica Nigh – The Fertilizer Institute
The chief economist with The Fertilizer Institute says global fertilizer supplies will be constrained for the foreseeable future even if the Strait of Hormuz fully reopens.
Veronica Nigh says many questions remain about the state of Middle Eastern production facilities.
“How long is it going to take for those fertilizer vessels to get through? I don’t think they’re probably going to be the first priority vessel to get through there.” She says, “How long is it going to take for those facilities, even if they’re undamaged, to get back up and start producing?”
She tells Brownfield there’s growing concern the lack of phosphate fertilizer exports from the region could impact U.S. supplies for the upcoming fall application period.
“Fifty percent of the world’s exportable sulfur is from the impacted region. And you can’t make phosphate fertilizer without sulfuric acid. She says, “So how long it takes for that sulfur trade to get back to normal is really going to be something that we’re keeping an eye on.”
Nigh says the supply constriction has sent sulfur prices soaring, which is being reflected in fertilizer prices.
“We’re still looking at sulfur prices, spot prices, over $1,000 a ton, in late 2024 sulfur prices were somewhere around $150 a ton,” she says.
She says the U.S. relies on Saudi Arabia for about 40% of its imported phosphate fertilizer, so the status of the Strait is vital to American agriculture.
