Global fertiliser prices have hit an all-time high, surpassing the peak of 2008 according to the CRU Fertiliser Index.

The weighted index is a composite of average prices of nitrogen, phosphate and potash fertilisers.

Nitrogen fertiliser prices have increased fourfold while phosphate and potash prices have risen over threefold since the beginning of 2020, according to CRU group head of fertilisers Chris Lawson.

Supply shortfalls

“While farmers in developed markets have benefited from high agricultural commodity prices, helping to partly offset high input prices, demand destruction is increasingly likely due to high prices and supply shortfalls,” he said.

The Egyptian granular urea wholesale price is currently trading at $1,122/t (€1,020/t), similar to last week. Potash prices hit a nominal high last week of $1,065/t, surpassing the previous peak of $1,000/t ?set in September 2008.

Commenting on prices, Humphrey Knight of CRU group said: “Brazil is the world’s largest importer of potash, even ahead of China, and is reliant on imported product for nearly all its annual consumption.

Challenge

“With the world’s second and third largest exporters of potash in Belarus and Russia now severely limited in what they are able to supply, consumers in end-markets like Brazil face a significant challenge in securing sufficient product this year.”