With the ongoing conflict with Iran, supply issues have emerged due to shipping obstructions in the Strait of Hormuz. This includes fertilizer, with The Fertilizer Institute reporting U.S. import prices up 30% between February 27 and March 6.
Matt Morelli, a crop advisor for Nutrien, says the situation right now is not critical, but they are starting to feel the impact — and things could become more serious if not resolved soon.
“It’s not too severe as of right now, but we definitely could experience some supply issues coming up,” Morelli said. “And we could even see some pricing issues with things moving forward, but it’s hard to say this early.”
Morelli believes there could be issues with getting important fertilizers like UAN-32. As planting begins in the Midwest, there is the possibility that demand could outpace supply if the Strait is not reopened in time. This will also mean higher prices and lower availability for growers in California.
“If availability becomes an issue, pricing goes up,” Morelli said. “It will get difficult for growers and we’ll have to look at other options. Once UAN-32 becomes tight, it creates issues for everyone.”
— By Donald Promnitz, Editor