Things are getting Nutrien-teresting.
As the world’s largest fertilizer company, Canada-based Nutrien is considering additional increases in potash production due to limited shipments from Russia and Belarus. Those limitations have been no small hit, since the two nations accounted for more than 40% of global potash exports last year. In response to the uncertainty, Nutrien said it planned to increase output in 2022 by nearly 1M tonnes to about 15M.
Oh, and this: Already tight supplies, combined with sanctions in the Black Sea region, have caused crop nutrient prices to skyrocket to near-record levels. Compared to last year, all fertilizers are up at least 48%, with anhydrous showing the highest jump: it’s a whopping 116% more expensive.
The limited supply has also caused Nutrien profit to jump 10x in the first quarter. The company boosted its full-year earnings forecast past previous estimates, and stock prices followed with a 5% increase.
Zoom out: Nutrien interim CEO, Ken Seitz, said the fertilizer disruptions could extend into 2023 because of the Russian invasion of Ukraine, plus sanctions on Belarus. It will take time to rebuild the region’s export capacity. In the meantime, supplies could be found from alternative sources—which could change the global trade patterns.