Fertilizer Prices Rise: Market Reacts to Geopolitical Risks, Not Shortage

The threat of blocking shipping routes, rising gas prices, and insurance risks have already significantly impacted the fertilizer market in Ukraine. Market participants discuss the situation in the material "Gas Strike on the Agricultural Sector: Why the Price Soared and How Agrarians Are Seeking a Way Out" on Latifundist.com. Andriy Khalyavka, owner of GROSSDORF company, explains: the threat of blocking the strait instantly raised energy and freight prices, caused an increase in insurance premiums, and created new logistical limitations. According to him, the current 25-30% increase in fertilizer costs is mostly an emotional market reaction to risks, rather than a real resource deficit. He explains that the market is simply playing on expectations. "Gas is expensive, and this is what is currently restraining the full recovery of fertilizer production in Ukraine. Simply put: the raw materials are available, but the cost is unacceptable for many players," the producer adds. The ...