Global shocks to fertilizer markets: Impacts on prices, demand and farm profitability

During 2021–2022, spiking fertilizer prices raised fears that fertilizer application would drop around the world, leading to lower crop production, higher food prices, and greater food insecurity. Even writing mid-2024, a paucity of data impedes a full assessment of how the underlying global market...

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Main Authors: Vos, Rob, Glauber, Joseph W., Hebebrand, Charlotte, Rice, Brendan
Format: Journal Article
Language:Inglés
Published: Elsevier 2025
Subjects:
Online Access:https://hdl.handle.net/10568/169136
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author Vos, Rob
Glauber, Joseph W.
Hebebrand, Charlotte
Rice, Brendan
author_browse Glauber, Joseph W.
Hebebrand, Charlotte
Rice, Brendan
Vos, Rob
author_facet Vos, Rob
Glauber, Joseph W.
Hebebrand, Charlotte
Rice, Brendan
author_sort Vos, Rob
collection Repository of Agricultural Research Outputs (CGSpace)
description During 2021–2022, spiking fertilizer prices raised fears that fertilizer application would drop around the world, leading to lower crop production, higher food prices, and greater food insecurity. Even writing mid-2024, a paucity of data impedes a full assessment of how the underlying global market shocks may have affected farmers and food production around the world. Using proxy indicators for fertilizer demand and farm profitability, we find that despite the steep increase in input costs, global demand for fertilizer fell only modestly during the 2022–2023 crop cycle, suggesting many (commercial) farmers were able and willing to absorb increased input costs in the context of generally good harvest prospects and, at the time, high crop prices. However, we also find the fertilizer price spikes have not been felt equally, with many farmers in Africa estimated to have been affected more adversely, even though with varied impacts also amongst those farmers.
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spelling CGSpace1691362025-10-26T12:50:50Z Global shocks to fertilizer markets: Impacts on prices, demand and farm profitability Vos, Rob Glauber, Joseph W. Hebebrand, Charlotte Rice, Brendan shock fertilizers markets prices profitability global value chains supply chain disruptions During 2021–2022, spiking fertilizer prices raised fears that fertilizer application would drop around the world, leading to lower crop production, higher food prices, and greater food insecurity. Even writing mid-2024, a paucity of data impedes a full assessment of how the underlying global market shocks may have affected farmers and food production around the world. Using proxy indicators for fertilizer demand and farm profitability, we find that despite the steep increase in input costs, global demand for fertilizer fell only modestly during the 2022–2023 crop cycle, suggesting many (commercial) farmers were able and willing to absorb increased input costs in the context of generally good harvest prospects and, at the time, high crop prices. However, we also find the fertilizer price spikes have not been felt equally, with many farmers in Africa estimated to have been affected more adversely, even though with varied impacts also amongst those farmers. 2025-05 2025-01-15T17:25:55Z 2025-01-15T17:25:55Z Journal Article https://hdl.handle.net/10568/169136 en https://www.ifpri.org/blog/russia-ukraine-war-after-year-impacts-fertilizer-production-prices-and-trade-flows/ https://www.foodsecurityportal.org/node/2733 Open Access Elsevier Vos, Rob; Glauber, Joseph W.; Hebebrand, Charlotte; and Rice, Brendan. 2025. Global shocks to fertilizer markets: Impacts on prices, demand and farm profitability. Food Policy 133(May 2025): 102790. https://doi.org/10.1016/j.foodpol.2024.102790
spellingShingle shock
fertilizers
markets
prices
profitability
global value chains
supply chain disruptions
Vos, Rob
Glauber, Joseph W.
Hebebrand, Charlotte
Rice, Brendan
Global shocks to fertilizer markets: Impacts on prices, demand and farm profitability
title Global shocks to fertilizer markets: Impacts on prices, demand and farm profitability
title_full Global shocks to fertilizer markets: Impacts on prices, demand and farm profitability
title_fullStr Global shocks to fertilizer markets: Impacts on prices, demand and farm profitability
title_full_unstemmed Global shocks to fertilizer markets: Impacts on prices, demand and farm profitability
title_short Global shocks to fertilizer markets: Impacts on prices, demand and farm profitability
title_sort global shocks to fertilizer markets impacts on prices demand and farm profitability
topic shock
fertilizers
markets
prices
profitability
global value chains
supply chain disruptions
url https://hdl.handle.net/10568/169136
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