On July 1, more than 7,000 port workers went on strike, which has affected shipments from West Coast ports. Canada produces 95% of its potash for export, much of which flows through the Port of Vancouver.
Fertilizer Canada said that potash is a critical raw material, that the disruption of overseas shipments could affect global food security, and that the government must take immediate action using all available means, including recalling Parliament and enacting back-to-work legislation.
The association said swift action is necessary because even after a settlement is reached there will be repercussions, as transportation will take time to recover and the government must protect Canada's reputation as a reliable trading partner.
"Potash is critical to global food security, and we are concerned that this strike will threaten our delivery of products to farmers around the world who need them to grow nutrient-rich crops," said Karen Proud, President and CEO, Canadian Fertilizer.
"The fertilizer industry relies on a reliable supply chain to get our products to farmers. This strike is one of many interruptions we are seeing and underscores the importance of strengthening Canada's supply chain."
Canada is the world's largest producer and exporter of potash, with more than 75 countries relying on Canadian fertilizer, followed by Russia and Belarus, according to the Canadian Fertilizer Corporation.
While North American farmers have completed their fertilizer needs for spring crops, the association says Canadian production serves markets in Asia and South America that rely on potash shipments during the growing season.
Typically, supplemental activity in the U.S. potash market begins in July, and extended logistical issues could have some impact on the availability of this short demand period.
Comments