Transportation cannot keep up with demand, resulting in available spaces being sold to the highest bidder. This creates a huge backlog of the simplest products and will drive up the prices of the goods in our daily lives.
Feeding your livestock with overpriced food, or fertilizing your crops with overpriced inputs. The consequences of this global supply chain drama will be felt by all farmers and gardeners on our planet.
The grower is directly or indirectly affected by all this. Whether it is heating the greenhouse with more expensive gas or using electricity to light the crop. Greenhouses that remain empty therefore drive the price up further.
The effect is that everyone is afraid of making a loss and starts buying like crazy, which only emphasizes this unstable price development and pushes prices up even further.
But will this soon come to an end? Considering the available stocks of fertilizers, and China, one of the largest exporters of fertilizers, is slowing down its exports, the end of this price hike is far from in sight.
And as to whether you should buy or wait, nobody can give you a clear answer. We connot see into the future, but in the near future we only expect an increase in price.
Perhaps all this can bring something good in the field of the sustainable path. With the price increase of chemical fertilizers, it becomes even more sensible to replace it (partly) with sustainable fertilizers. The gap there was becomes smaller and therefor easier to take. All this of course apart from the fact that every sensible grower is a user of sustainable fertilizers!
For more information about sustainable fertilizers: firstname.lastname@example.org
Source: Trouw, DTN, Bloomberg, Drewry, CNBC