Record-high fertilizer prices threaten food supply, risk sustained inflation (Local 12)

Local 12 (Alabama, USA) published an article that states agriculture experts and the United Nations are sounding alarms over the potential for a global food shortage and skyrocketing food prices caused by the chaotic fertilizer market worsened by the war in Ukraine. The issue dates back to before the conflict in Ukraine, according to senior research fellow David Laborde. However, the war has escalated the problems due to government sanctions enacted in response and disruptions in the supply chain. It will also be difficult for other fertilizer producers to fill the void left by Russia and Belarus. Laborde said the price of natural gas has become preventatively expensive for some European producers to operate, causing them to shut down fertilizer plants. Outside of the U.S. action, Laborde said more governments can work to facilitate access to fertilizer or address its affordability through subsidies or other methods, though it will require smart policies that do not set expectations of continued free government assistance.” He added, “There is positive action that government could do, but also really think about the ‘do not harm’ aspect on it and making sure that they don’t create more problems than what already exists based on the conflict and some of the underlying causes of the fertilizer prices.”