Mosaic:
Global Issues Push Prices Up
Mosaic: Several Factors Driving Up Fertilizer Costs; Some Groups
Disagree
Russ Quinn
DTN Staff Reporter
Mosaic, which pushed for tariffs on
phosphate imports earlier in 2021, believes there are several other
reasons for high fertilizer prices.
(DTN photo by Matthew Wilde)
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.
NCGA v. MOSAIC
While Mosaic said
the countervailing duties did not have an effect on the higher
fertilizer prices, other groups disagree.
The National Corn
Growers Association (NCGA) issued a news release Friday saying they
sent a letter to Mosaic urging the company to end the fertilizer
tariffs and to "stop engaging in irresponsible corporate behavior."
"Mosaic's posture to
date has been a masterpiece of irresponsible corporate social
responsibility," the letter said. "We ask you voluntarily withdraw
your countervailing duties and allow critical supply back into the
U.S. at a time of inadequate supplies and soaring phosphate prices."
Russ Quinn is a DTN editor
and reporter. He was born and raised in east central Nebraska on a
cow-calf and row-crop farm near Elkhorn,
which he still operates with his dad.
Russ attended Iowa Western Community College in Council Bluffs, Iowa,
and graduated with an associate's degree in agribusiness and farm
management in 1994. He then attended the University of Nebraska in
Lincoln, Nebraska, and graduated with a bachelor's degree in
agricultural sciences in 1996.
After graduating, he began working for DTN in May of 1997 in the
agriculture telesales department. In May of 1998 he was promoted to
his current position in the DTN ag newsroom. Over the years, Russ has
had many different editing and reporting duties and currently writes
original articles including the growing-season series "View From the
Cab" and the weekly column "Russ' Vintage Iron."
Green Play Ammonia™, Yielder® NFuel Energy.
Spokane, Washington. 99212
www.exactrix.com
509 995 1879 cell, Pacific.
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