MARKET ANALYSIS

FERTILISER ACCOUNTS FOR 70% OF THE PRODUCTION COSTS OF CORN

Global fertilisers costs have skyrocketed to record highs in a perfect storm of events, including extreme weather, plant shutdowns and government sanctions. The energy crises in Europe and China are exacerbating the impact because of the importance of coal and natural gas as feedstocks. China is also implementing new regulations aimed at exporters in an attempt to protect domestic supply. In an interview now being quoted across news outlets, Pramote Charoensilp, president of the Thai Agriculturist Association, was quoted as saying “A ton of fertiliser is now more expensive than a ton of rice.” Fertiliser accounts for as much as 70% of the production cost of rice and corn. But increasing fertiliser costs will impact more than just these staples.