The Fertilizer Institute recently released a statement on the reopening of the Strait of Hormuz. The organization called the Strait of Hormuz, “a critical transit route for fertilizer and energy markets. Significant volumes of fertilizer products and raw materials transit the region each year, making stability and predictability essential to agricultural supply chains worldwide.”
TFI President and CEO, Corey Rosenbusch spoke on the matter saying, “Roughly 40% of the world’s urea fertilizers and roughly half of its sulfur supply pass through the Strait of Hormuz, and so farmers in the U.S. and around the world need this vital shipping lane open and operational, We appreciate the diplomatic efforts that made this outcome possible and remain hopeful that continued stability in the region will support global agricultural supply chains.”
The TFI statement mentioned that despite the reopening of the Strait being positive news for trade “market recovery from the disruptions will likely take months.”
TFI Chief economist Veronica Nigh said, “The Strait is open but the ramp up time will be significant. This is not like turning a light switch back on and suddenly everything returns to normal, Tankers carrying oil will be prioritized over fertilizer shipments, damage to the region’s production facilities is still being assessed, and the shifting global demand for nutrients and regions that need them, among many other factors, are all things that will impact what the tail of this disruption looks like.”
Audio Reporting by Elizabeth Sanders for Southeast AgNet.