Nutrien, the world’s largest fertilizer producer, says Russia’s invasion of Ukraine could result in prolonged disruptions of fertilizer supplies.
In a report from Reuters, Interim Chief Executive Ken Seitz said Nutrien will boost potash production if it sees sustained supply problems in Russia and Belarus, the world’s second-and third-largest potash producing countries after Canada. The comments come as farmers are already dealing with high fertilizer costs stemming from supply chain disruptions and natural gas prices. However, state corn organizations allege the price of fertilizer closely follows the price of corn, not natural gas.
Speaking at the BMO Capital Markets investor conference, Seitz said, “We’re going to run our plants, run them flat out,” adding, ”Could we see interruptions in exports out of Russia? Yes. Can we see plant closures? We could.”
Nutrien expects to sell up to 14.3 million metric tons of potash this year, its most ever, and is considering further expansion, according to Reuters.