Fertilizer, Supply Chain Turmoil to Grip Grain Industry

The Russia and Ukrainian War's impact on food security,肥料价格和农业供应链will challenge producers and consumers over the next several months, said Jay Debertin, President & CEO ofCHS, Inc., at the126th Annual NGFA Convention.

"A lot of people in the world live on $20 a day," said Debertin, at the opening of his general session address in Charleston, SC. "And when food supply is interrupted and energy costs are what they are, that has an impact that frankly I think is hard to get our heads around because [in the United States] we don't have some of those same hurdles that people across the world are facing."

Ukraine and Russia export approximately 29% of the世界小麦出口per week and account for 90% of the world's corn exports. For companies like CHS, Inc., the largest farmer-owned agriculture cooperative, global-scale food insecurity is a top-of-mind issue with exports halted out of the Black Sea.

Debertin还表示，对于已经高价肥料的高需求和有限的供应将在今年夏天来到一头。俄罗斯生产世界肥料的11％，生产者难以确保明年的替代来源。

"When it comes to supply, the price is exorbitant, but the fact of the matter is for spring this year, fertilizer is likely either on the water or in storage ready to go. With some exception around the edges, it's in pretty good physical condition."

Russia is an important piece of the American supply chain, but it's not likely they will engage in trade on a world scale for some time, resulting in disruption and possibly opportunity in the short-term, Debertin remarked.

"The integrated supply chains that we built will be tested, but we’ll find a way," he said. "That doesn't happen quickly with ocean freight and markets being called upon that typically wouldn't supply certain areas. But I think we have efficient systems across the world that will react, price will do its job in some respects, and the resources will get to where they're needed."

On the home front, Debertin applauded the passage of the Bipartisan Infrastructure Bill in 2021.

“我喜欢看到水道的支出。特别是作为一家船舶的公司，水道非常重要。我认为该国在水道支出后面掀起了落后，但我对国会所有成员有一个简单的短语：谢谢，“杜贝丁说。

—Elise Schafer