CHS CEO points to several factors behind record fertilizer prices
The CEO of the nation’s largest agricultural cooperative points to several reasons for record high fertilizer prices.
Jay Debertin with CHS tells Brownfield there are supply issues around the world.
“Driven many times by natural gas prices around the world, and what the economics of producing fertilizer is in parts of the world that have higher natural gas prices. And parts of the world that use coal to produce fertilizer and are they or aren’t they using that coal.”
He says the supply chain is still recovering from Hurricane Ida and farmers used a lot of fertilizer in the fall.
“Because it was a wide-open fall and farmers really went to the fields with fertilizer. So you put all of those factors and then a few more on it, it’s really created some volatility that’s a bit stunning.”
Debertin does not expect supply and demand conditions to change dramatically heading into spring, but he says the market will eventually “tip over” and fertilizer prices will return to more normal levels.