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War Hangs Over American Farmers as Fertilizer Prices Rise
The New York Times • • business
Key Points:
- The Mosaic Company, a major global fertilizer producer, is incurring significant losses due to a shortage of sulfur, a key ingredient stuck in the Strait of Hormuz amid the Iran war disruption.
- Sulfur prices have surged, now accounting for half the cost of producing a ton of phosphorus fertilizer, contributing to Mosaic's $258 million loss in the quarter ending March 30 and prompting production slowdowns.
- Although a preliminary agreement between the U.S. and Iran aims to end the conflict, experts warn it will take months for shipping to normalize and years for infrastructure rebuilding, keeping fertilizer prices elevated until at least 2028.
- Mosaic faces pricing challenges as farmers, the primary buyers of phosphorus fertilizer, are reducing purchases due to their own financial difficulties from decreased crop demand, limiting Mosaic's ability to pass on increased costs.
