Statement on Russia-Ukraine Conflict
TFI is concerned about the destabilizing situation occurring in the Ukraine. Our main concern is the safety of all the citizens in harm’s way.
Currently, it is unclear the exact magnitude and how the Russia-Ukraine conflict will affect the already-tight global market for fertilizer, but it will add additional pressure on a market that has already experienced many challenges over the last 18 months.
It has been implied that fertilizer companies may take advantage of the current situation, but that is far from the truth. The U.S. fertilizer industry is committed to serving farmers and makes it unequivocally clear that ensuring grower access to the nutrients needed to sustain people around the world is of the highest priority.
Because 90% of all fertilizer used is consumed outside the United States, the actions of Russia will impact the global market for fertilizer around the world. Russia is the second largest producer of ammonia, urea, and potash and the fifth largest producer of processed phosphates. In terms of their share of the global export market, Russia accounts for 23% of ammonia, 14% of urea, and 21% of potash, as well as 10% of processed phosphate exports. The conflict in the Ukraine will also put additional stress and uncertainty on energy markets. Russia supplies approximately one-third of Europe’s natural gas, the main feedstock to produce nitrogen fertilizers.
Because of Russia’s large fertilizer production and its role as a global fertilizer supplier, the removal of Russian product from the global marketplace will have an impact on supply. Despite the benefits afforded by a robust U.S.-based fertilizer industry, prices for our products are driven by global supply and demand factors. There have been reports of misleading information regarding the applicability of U.S. sanctions to companies in the industry, and TFI strongly encourages companies to consult legal counsel for advice on sanctions-related issues at question.