Nutrien, the world’s largest fertilizer company, is weighing whether to increase output with supply disruptions likely extending beyond 2022.
Fertilizer prices have soared to all-time highs as Russia’s invasion of Ukraine and sanctions on Belarus have thrown a massive chunk of the world’s supply into disarray. The sanctions have the potential to create more long-lasting impacts as it will take time to rebuild the region’s export capacity and buyers look to source supplies from alternative sources, Nutrien CEO Ken Seitz said.
The company is “looking at the potential to accelerate our ramp up of potash production,” Seitz said Tuesday on the company’s first quarter earnings call. Disruptions “could last well beyond 2022”.
The Canadian company has already said it would boost potash production by about one-million metric tons in 2022 to 15-million tons, with most of the additional volume coming in the second half of the year. Russia and Belarus account for about 40% of global potash production and exports, according to Nutrien. The Mosaic also said in an earnings calls that it expects the tight potash market to extend well beyond 2022.