A huge rally in food prices is stoking record fertilizer demand – by Marcy Nicholson and Justina Vasquez (Bloomberg News – December 9, 2020)


Fertilizer producers are next in line to benefit from rising crop prices, with farmers poised to plant more acres in 2021.

For the world’s handful of companies that produce potash — a potassium-rich fertilizer mined underground from evaporated sea beds — it is the light at the end of the tunnel following several volatile years. Bloomberg’s Green Markets pegs global potash demand at a record in 2021, while Morningstar Inc. says it will likely set a new “high watermark.”

Farmers’ incomes in the U.S. and Canada are up from a year earlier, boosted by crop prices that surged to multi-year highs on the back of strong demand from China and by pandemic-related government stimulus.

As farmers invest their profits back into their farms and expand their plantings, they’ll need more fertilizer.

“That was a false start with the pandemic and all the talk of a terrible year, but now we see a huge rally in food prices ll the vital signs,” Pedro Farah, chief finance officer of Canada’s Nutrien Ltd., said during a presentation last week.

For the rest of this article: https://www.bnnbloomberg.ca/a-huge-rally-in-food-prices-is-stoking-record-fertilizer-demand-1.1534281