Fertilizer is the food of food. The importance of this truth has been revealed after the Russia-Ukraine conflict. The rising prices of fertilizers have affected the food security of many countries.
According to German media reports, Africa's fifth largest country Chad has declared a food emergency. The country's middle class is already facing the pressure of sharply rising food prices, and the situation of the country's farmers is even more difficult. However, another piece of news brings hope, that is, the United States has recently relaxed its restrictions on Russian fertilizers.
Faced with this situation, many people say that EU is "confined". However, looking at the essence through the phenomenon, the next international fertilizer prices, and even food production, will usher in new changes. Considering that food is the most important thing for the people, changes in fertilizer prices will affect each of us.
What are the new factors that drive changes in fertilizer prices in foreign markets?
The sharp increase in the price of chemical fertilizers has directly increased the farming costs of farmers around the world. The reactions of foreign farmers are also divided into two types. One is like American farmers switching to less fertilizer crops, and the other is like Brazilian farmers. Refuse to buy overpriced fertilizers. Especially the latter has made the warehouses of chemical fertilizers in Brazil's Paranagua Port and Santos Port full, and local farmers said that they will only consider purchasing if the price of fertilizers drops further. Farmers' initiative to reduce demand will have a downward trend in fertilizer prices.
At the same time, due to the previous sanctions against Russia, Russian fertilizers once faced a situation where they had nowhere to sell them. As the supply of chemical fertilizers in the world, especially potassium fertilizer , has been significantly reduced, the price of chemical fertilizers has continued to soar. result. The recent liberalization of restrictions on Russian fertilizers by the United States has also given the EU no reason to insist on restrictions on Russian fertilizers. This is a signal that fertilizers are gradually realizing normal circulation, and their prices naturally have a basis for falling.
Generally speaking, it is precisely because of the retreat of American farmers, the resistance of Brazilian farmers, and the reduction in the amount of fertilizer purchased by farmers in many other countries that the demand for chemical fertilizers has been actively reduced. At the same time, as the United States and other countries subsequently lift restrictions on Russian fertilizers, the increase in fertilizer supply is also the basis for the decline in fertilizer prices. It is worth mentioning that when chemical fertilizers seriously affect the diet, most countries will naturally give priority to protecting the stomachs of the poor rather than the wealth of the rich.
Faced with the surge in international fertilizer prices, what about us?
According to professional statistics, from January to May 2022, my country's chemical fertilizer exports reached approximately 7.57 million tons. In comparison, my country's chemical fertilizer imports during the same period were approximately 3.93 million tons, a year-on-year decrease of approximately 16%. %. Comparing the two, it is not difficult to find that in the first half of this year, my country's fertilizer export volume was nearly twice the import volume. If we want to lower domestic fertilizer prices, we need to implement greater control over the import and export of chemical fertilizers.
In addition, in the "Guiding Opinions on Promoting High-quality Development of the Petrochemical and Chemical Industry during the "14th Five-Year Plan"", the country clearly stated that it is necessary to strengthen the protection of chemical fertilizer production factors and increase production concentration and capacity utilization. This measure means that the country will start from the direction of increasing fertilizer production capacity, so as to increase domestic fertilizer supply in an orderly manner and maintain the smooth operation of the fertilizer market.
Faced with the problem of "fat and expensive", what should farmers pay attention to?
One is that qualified farmers are advised to use organic fertilizers to proactively reduce the demand for chemical fertilizers, thereby forcing the price of chemical fertilizers to drop. Another is that the types of self-made organic fertilizers should be distinguished. After fermentation of human feces and poultry and livestock manure, it is nitrogen fertilizer ; after fermentation of rice bran, bone meal, and chicken manure, it is phosphate fertilizer ; plant ash is potassium fertilizer.
