According to Forbes, Russia's invasion of Ukraine has triggered the price of nitrogenous fertilizers, such as urea and ammonia, between 100% and 180%, as well as opening the door to shortages in the Mexican market. While at the international level, the price of urea is above 900 dollars (10 thousand pesos) per ton and ammonia is worth 500 dollars (30 thousand pesos) per thousand kilos. A situation that could significantly affect global food security.

Russia is an important producer of potash and exporter of natural gas, a key input in the production of nitrogenous fertilizers, for which it is feared that the extension of the conflict could have repercussions on the shortage of these key elements for food production.

Companies

Canada's Nutrien Ltd (NTR.TO), the world's largest fertilizer producer, said last Tuesday that Russia's invasion of Ukraine could lead to prolonged disruptions in global supplies of potash and nitrogen for crops.

Interim CEO Ken Seitz said Nutrien will increase potash production if it sees sustained supply problems in Russia and Belarus, the world's second and third largest potash-producing countries after Canada.

The United States, the European Union and other countries have imposed economic sanctions on Russia, measures that could hinder its exports of natural gas, potash and nitrogen. Russia's ally Belarus is already subject to European and US sanctions that have restricted its potash exports.

Russia's war against Ukraine has also raised concerns about supply problems for wheat, corn and vegetable oil in the Black Sea region, pushing up world prices.

"We're probably going to see a longer, longer disruption of (potash) supply out of that part of the world," Seitz told a BMO Capital Markets investor conference.

“We are looking very closely at, if this holds, how we deploy miners and break ground in a very practical and pragmatic way,” he added.

Nutrien expects to sell up to 14,3m tonnes of potash this year, the most in its history, and has said it is considering further expansion.

In the same vein as Nutrien, the Norwegian firm Yara also warned in a press release on Monday that Russia's invasion of Ukraine represents a threat to world food supply.

“We are extremely concerned about the serious situation now developing in Ukraine and fully support the Norwegian government's condemnation of the Russian military invasion. Yara has been directly affected by the conflict both by having employees in the war zone in Ukraine and by a missile that hit Yara's office building in Kiev. Fortunately, none of our employees were physically harmed. At the same time, we source a considerable amount of essential raw materials from Russia, which are used for food production around the world," the company said in the press release.

Call from the USA

In the midst of this scenario, the Secretary of Agriculture of the United States, Tom Vilsack, specified on Thursday that he hopes that the fertilizer and agricultural supply companies affected by the Russian invasion of Ukraine do not take unfair advantage of the situation, amid the prices already high of products for crops.