The Mazot ve gübre News website is an informative site that is a great source of information on a wide variety of topics. There are articles that discuss the latest in war in Ukraine, China suspending exports of fertilizer until at least June of next year, the West Fertilizer Company plant explosion in Texas, and the USDA using funds from the Commodity Credit Corporation to promote new, independent production.
China suspends exports of fertilizer until at least June 2022
The Chinese government has recently increased the clampdown on fertilizer exports. As a result, fertilizer prices have risen by nearly 80% since last year. Those who are in the fertilizer business can expect to see prices remain high through 2022.
As a result, China will suspend fertilizer exports until at least June 2022. It is unclear what will happen with DAP and MOP exports. Until then, China will continue to produce a significant amount of its own fertilizer.
The Chinese government has also rolled out new measures to bolster the nation's agriculture industry. Some of these measures include improving the quality of livestock feed and encouraging the production of alternative energy crops such as solar power.
Among the many measures, the most important is to remove existing import and export restrictions for fertilizers. This includes the DAP and MOP industries, as well as agricultural inputs and food. In addition, a number of countries have at least a third of their use at risk.
War in Ukraine
The conflict in Ukraine continues to have a disproportionate impact on the global food and energy markets. It highlights the need to shift away from fossil fuels. But it also reveals the major weaknesses in global food and energy systems.
While the Ukrainian conflict has been driving price hikes and supply disruptions in the fertilizer market, it is not the only factor. Global access to oil and gas is being dramatically reduced, and chemical feedstocks could be affected as well.
The war in Ukraine has exacerbated global supply concerns, particularly in countries that rely on nitrogen-based fertilizers. Especially in soil-depleted regions, it is critical to have access to adequate supplies of fertilizer.
Russia's actions have pushed up the price of nitrogen-based fertilisers by over 80 percent since last year, and prices of phosphates and potash have also risen. With these increases, farmers are facing a tightening of the global market.
In addition, Russia has ceased exports of natural gas to Europe. This has boosted European gas prices, which are already high.
West Fertilizer Company plant explosion in Texas
The explosion at a fertilizer plant in West, Texas was a tragedy of epic proportions. It left 15 people dead and more than 250 injured. Many in the small Texas town wondered how such a devastating event could have been avoided.
After the incident, the State Fire Marshal interviewed 300 people. An investigation uncovered many ways the disaster could have been avoided.
One of those was a chemical safety plan. The plan was created by the fertilizer company in 2011 and declared that the plant posed no fire or explosive risks. However, it failed to meet its own rules.
Another was an executive order by then-President Barack Obama, which required federal agencies to improve the way they handle chemical hazards. It also mandated the sharing of important information and data.
The Chemical Safety and Hazard Investigation Board issued a report on the West plant explosion that identified several shortcomings. These included a lack of regulatory oversight and an ineffective emergency response.
USDA will use funds from the Commodity Credit Corporation to encourage new, independent production
The Commodity Credit Corporation (CCC) is a wholly owned Government corporation that was created in 1933 under a Delaware charter. Its Board of Directors consists of seven members appointed by the President of the United States. Each year, the CCC borrows up to $30 billion from the Treasury. Those funds are used to support domestic and international agriculture programs.
The Commodity Credit Corporation was designed to stabilize the U.S. agriculture industry. Its officers are USDA officials. They supervise the Board's activities and liaison with other governmental officials.
In addition to providing financing for agriculture and conservation projects, the Corporation has the authority to issue notes and obligations, which are approved by the Secretary of the Treasury. Funds for the Corporation may be borrowed from other sources. All bonds issued by the Corporation are subject to the approval of the Secretary of the Treasury.
The Corporation has authorized a capital stock of approximately $100 million. This amount is replenished through appropriations.