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FOCUS ON FERTILIZERS
AND FOOD SECURITY
Issue 1; June 2, 2008
Fertilizer Prices
are Soaring
World Fertilizers
Prices double in 2007
Impact of China
Earthquake Uncertain
World fertilizer prices
doubled in 2007. The price for phosphorus has doubled twice in recent
months, and potash prices have almost doubled in the first 3 months of
2008. Urea is following the upward trend.
The price of diammonium
phosphate (DAP) was about $252 per metric ton in January 2007, then almost
tripled to $688 by January 2008—and doubled again, to about $1,230 per ton
during the past three months. The news is equally significant for muriate
of potash. (MOP) Prices increased from $172 to $288 per metric ton in
January 2007. By late April 2008 MOP sold for $500 per ton. Price of urea
increased from about $277 to $405 per ton in 2007 and now is about $452 per
ton
IFDC is tracking the
growing concerns regarding fertilizer prices and supplies and recently
published a news release that provides additional detail and data about the
rising fertilizer prices.
Analysis
Dr. Amit Roy, President
and CEO of IFDC, explains impacts: “The disturbing rise in fertilizer
prices affects the rural poor most, especially in Sub-Saharan Africa, the
world’s poorest region. Those farmers desperately need affordable
fertilizers to replenish their nutrient-depleted soils.”
Recent tariffs placed on
local production in China could create spot shortages of products, adding to
the escalating world price issue. China placed the tariff on
fertilizers—135% for phosphorus and 130% for nitrogen—to assure that local
farmers will have enough supply to produce the food and fiber needs of the
nation.
Solutions
IFDC is developing and
promoting technologies for better fertilizer use. “IFDC has pioneered the
development of integrated soil fertility management, or ISFM, as a tool to
improve the profitability of fertilizer use for smallholder farmers in
Sub-Saharan Africa,” says Dr. Henk Breman, IFDC Expert Adviser, Environment
and Agronomy, based in Rwanda. This technology promotes both organic and
inorganic sources of plant nutrients, including mineral fertilizers, crop
residues, phosphate rock and lime.
IFDC is promoting deep
placement (UPD) or the insertion of large briquettes of urea fertilizer into
the root zone of transplanted rice, as a technology to decrease fertilizer
use. “Most rice farmers in Asia broadcast urea directly into the
floodwater,” explains Dr. Roy. “Two out of every three bags are lost to the
air as greenhouse gases or become pollutants of groundwater.” IFDC’s
pioneering research to develop UDP was introduced into Bangladesh in the
1980’s. This technology improved net returns significantly and reducing
urea use by 50%. This technology has implications for other areas.
In the long term, Dr. Roy
says that the rising fertilizer price situation emphasizes the need for more
research to increase the efficiency of fertilizer use. “IFDC will help
address this issue,” he says.
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