Fertilizer costs are not determined by individual manufacturers like us. Inputs are globally traded commodities just like corn, soybean or wheat, and as a result, are influenced by several factors related to global supply and demand.

High global demand coupled with pandemics, supply chain disruptions, war, and energy crises have caused uncertainty and instability in many industries, and have deeply impacted businesses, governments, and individuals across the world. The agriculture industry has been impacted in many ways, one of which is the recent increase in input costs, including fertilizer prices, and it is understandably causing frustration among agricultural retailers and farmers.

At PULCU TARIM, our mission is to help the world “grow max with min”. We do everything we can to offer stable prices and a reliable supply of a wide range of fertilizers to world farmers. We recognize that fertilizer costs have increased dramatically over the past several months, and feel a responsibility to share our global perspective on this complex issue.

Fertilizers are globally traded commodities, just like corn, soybean and wheat, and as a result, their prices are influenced by many factors related to global supply and demand. Fertilizer prices are not determined by individual companies. Several factors have contributed to the rise in prices:

  1. Fertilizer demand follows commodity prices
    Demand for fertilizer has increased as farmers try to capture additional revenue from high crop prices, leading to an increase in both planted decares and fertilizer use.
  2. The cost of fertilizer production has increased
    Because of raw-material, energy, and labor cost increases, it costs more to produce fertilizers today than in the past. For example, the cost of ammonia has increased 288% year-over-year, and sulfur is up 165%. Further, the entire supply chain has been deeply impacted by the drastic increase in import and ground transportation costs.
  3. Trade and Supply disruptions continue to reshape the market
    Turkey and some other countries have announced restrictions of fertilizer exports to ensure their own domestic supply. For example, China, which accounts for over 25% of global phosphate exports, recently banned all phosphate fertilizer exports through June 2022, and Russian attacks on Ukrain, drastically decreasing global supply and adding pressure to global prices.

In addition, weather events and natural disasters have resulted in plant shutdowns adding to the cost.

In any given year, 90% of global fertilizer consumption continues as the grain production increases to meet increased demand.

In the meantime, PULCU TARIM has adjusted its typical trade volumes and committed to local farmers as well by boosting availability domestically.

We understand the pressures ag retailers and farmers are facing during this tumultuous time and the frustration that comes with it. We value our long-standing relationships with retail partners and their farmer customers, and will continue to offer them transparency and support as they navigate tough decisions ahead.

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