The international credit rating agency S&P announced that fertilizer prices pose a risk to food security in relation to agricultural production. In the statement made by Standard & Poor’s, it was stated that fertilizer prices reached historical levels due to supply disruptions after the COVID-19 outbreak, the Russia-Ukraine war and China’s export restrictions. The prices were assessed as ‘not sustainable’.

In the statement, it was noted that the prices of phosphate, urea and potassium increased by approximately 190%, 170% and 280%, respectively, in the last two years. Considering the possible effects of the situation, it was warned that the unsustainably high fertilizer prices pose a risk for food security.

On the other hand, it was analyzed that the situation in question shows the dependence of the industry on Russia, the world’s largest fertilizer exporter, and that this should be reduced. Investments needed to make this change happen are hampered by high inflation, shortages in supply and uncertainties over the form and cost of regulation to decarbonize the industry for nitrogen fertilizers, the world-renowned rating agency said in the statement.