May 2 (Reuters) –
According to economists, fertilizer companies are on track to earn their best quarterly profits in years as a result of a supply shortage of vital crop nutrients caused by the Ukraine situation.
Sanctions on Russia and Belarus, the world’s No. 2 and 3 producers of potash, are likely to help top fertilizer companies Nutrien Ltd (NTR.TO), Mosaic Co (MOS.N), and CF Industries (CF.N).
Prices of the crucial fertilizer component have reached levels not seen since the 2008 food crisis.
Potash prices were already skyrocketing last year due to scarcity of supplies following international sanctions imposed on Belarus’ state-owned manufacturer Belaruskali in reaction to President Alexander Lukashenko’s anti-political campaign.
However, because Russia is one of the leading exporters of potash and other agricultural nutrients including nitrogen, phosphate, urea, and ammonia, events in Ukraine have pushed prices to new highs.