As Food Prices Rise, Fertilizer Shortage Now Threatens World's
Farms
The world is faced with a global fertilizer shortage, experts
say, placing even more strain on food prices.
In the last few decades, an increasing reliance on industrial
fertilizers has led to surging demands for the largely fossil-fuel-based
products. Between 1996 and 2008 alone, fertilizer increased
by 56 percent in less industrialized nations and 31 percent
worldwide.
The bulk of this increased demand comes from rising meat consumption
in the less industrialized world, as more people adopt a Western
diet. Coupled with the recent push to devote more land to production
of biofuels, the cultivation of more grain as animal feed has
placed pressure on existing fertilizer production infrastructure,
and a shortage has been anticipated since at least 2003.
Due to a limited supply being outstripped by demand, synthetic
fertilizer prices have increased nearly threefold in the last
year alone. Some Midwest dealers have experienced supply problems,
leading them to restrict how much fertilizer each customer can
purchase.
"If you want 10,000 tons, they'll sell you 5,000 today,
maybe 3,000," said Iowa fertilizer dealer W. Scott Tinsman
Jr. "The rubber band is stretched really far."
Rising prices have placed an incredible financial strain on
companies that subsidize their farmers' fertilizer. In India,
for example, the yearly fertilizer subsidy has increased from
$4 billion in 2004-05 to an estimated $22 billion this year.
Fertilizer producers are building more than 50 new factories
to eliminate the shortage, but analysts say that the supply
problem will rear its head again in the long term. Because synthetic
fertilizers are based heavily on fossil fuels, shortages in
oil will eventually make themselves felt in the fertilizer industry.
In addition, the negative ecological and health consequences
of industrial fertilizer, such as creating massive "dead
zones" in oceans around the world, will only worsen with
increasing use.
A recent report by the U.N. Educational, Scientific and Cultural
Organization (UNESCO) recommended that people consume more local
food and that farmers use more natural farming techniques, including
non-industrial fertilizers.