Mosaic: Global Issues Push Prices Up

OMAHA (DTN) — The countervailing duties on Moroccan and Russian phosphate exports Mosaic pushed for earlier 2021 are not the reasons farmers are now seeing significantly higher fertilizer prices, according to a Mosaic official. The real reasons for extremely high fertilizer prices include higher fertilizer demand, supply disruptions and increasing costs associated with manufacturing fertilizer, the official said.

Despite these claims, some ag groups are not pleased with Mosaic and are asking for them to end fertilizer tariffs. One U.S. senator announced Friday he is asking for a Department of Justice (DOJ) investigation into fertilizer prices.

NOT MOSAIC’S FAULT

Andy Jung, Mosaic vice-president of market and strategic analysis, told DTN that despite the trade dispute, phosphate imports into the U.S. hit a record level in 2021. U.S. phosphate imports have increased by 1.3 million metric tons (mmt) in 2021, which is 57% higher than during the same January-to-November period in 2020.

While trade patterns have changed, nothing with the tariffs have changed overall supply of phosphate in the world or in the U.S., he said.

If anything, this situation has resulted in a more balanced and fair-trade market. This creates a more competitive environment with trusted and reliable suppliers for American farmers and American agriculture long term, he said.

Jung said Mosaic is committed to U.S. farmers, and because of this, the company adjusted their typical trade volumes in the global market. They have purposely diverted fertilizer tons away from the international market to boost availability domestically.

“Normally, it is roughly 50% domestic and 50% into the international market, but now we put 60% into the domestic market and 40% in the international market,” Jung told DTN.

Jung said the phosphate price in the U.S. is anywhere from $20 to $100 per ton less compared to other parts of the world. Other markets, such as India, have seen a greater increase in price because of the lack of Chinese phosphate exports into the world market.

Read more of this story from our partners at DTN/Progressive Farmer here: https://www.mydtn.com/agriculture/web/ag/news/article/2021/12/20/mosaic-several-factors-driving-costs