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Diane Publishing Books
Factors Contributing to the Recent Increase in U.S. Fertilizer Prices, 2002-08
Wen-yuan Huang (au)
U.S. prices of fertilizer nutrients began to rise steadily in 2002 and increased sharply to historic highs in 2008 due to the combined effects of a number of domestic and global long- and shortrun supply and demand factors. From 2007 to 2008, spring nitrogen prices increased by a third, phosphate prices nearly doubled, and potash prices doubled. The price spike in 2008 reflects low inventories at the beginning of 2008 combined with the inability of the U.S. fertilizer industry to quickly adjust to surging demand or sharp declines in internat. supply. Declining fertilizer demand, disruption in fall applications, increased fertilizer imports, and tightening credit markets for fertilizer purchases contributed to the decline of fertilizer prices in late ‘08.
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