The United States has recently added potassium and phosphate fertilizers to its final list of critical minerals designated by the Department of the Interior. This decision highlights the importance of these minerals to agriculture and the necessity of ensuring the security of domestic food production. According to the Department of the Interior, these minerals are considered vital to the nation's economy and security. Potassium fertilizer, in particular, is emphasized due to its critical role in increasing food production and quality, with about 95% of the U.S. demand for potassium fertilizer depending on imports, especially from Canada.
Corey Rosenbusch, President, and CEO of The Fertilizer Institute (TFI), stated, "As a nation, we must take proactive steps to recognize the role these minerals play in the food on our tables, to ensure our own agricultural future. Without these two minerals, the modern agricultural system would collapse, making it nearly impossible to feed a growing population."
He pointed out that reclassifying potassium fertilizer as a critical mineral aims to ensure the long-term stability of U.S. agriculture and address global food security challenges. This move also reflects an awareness of the threats that recent geopolitical conflicts and turbulence in the global food market pose to U.S. food security.
The global market for potassium fertilizer is highly monopolized, with Canada, Belarus, and Russia holding 68% of the world's potassium resources. Russia and Belarus are global leaders in potassium fertilizer production, ranking as the second and third largest producers, respectively, with their supply accounting for over 40% of the global total. Following the outbreak of the Russia-Ukraine conflict, potassium fertilizer supply faced production and transportation impacts, leading to shortages of tens of millions of tons and causing global prices to spike to $1,000.
Furthermore, global food production is under pressure, and a report by the Food and Agriculture Organization of the United Nations indicates an increase in the global population facing hunger. In this situation, ensuring the stable supply of key agricultural resources like potassium fertilizer becomes increasingly important. Countries including major agricultural nations like China, Brazil, and India face challenges in securing potassium fertilizer supplies. By adding potassium fertilizer to its list of critical minerals, the U.S. demonstrates its commitment to ensuring a stable supply of agricultural resources and addressing the threat of food crises.
The challenges in supplying and transporting potassium fertilizer are gradually becoming apparent, having a lasting impact on the global supply system. Additionally, rising mining costs for Russian potassium salts may further drive-up potassium fertilizer prices.
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