Farmers and governments in the G20 spent 19 billion more on key fertiliser imports in 2021 and 2022, while the world’s biggest fertiliser companies are expected to make almost 73 billion profit over the same period, according to new analysis released by GRAIN and the Institute for Agriculture and Trade Policy (IATP) this week.
The report, The Fertiliser Trap, calls for action to reduce the consumption of chemical fertilisers.
It came as the European Commission prepared to publish its plans to increase domestic production and make EU farmers less dependent on fertilisers this week.
Heads of state from the G20, a group of 20 of the world’s largest economies, will also discuss the fertiliser crisis when they meet in Indonesia on November 15-16.
Dr Sophia Murphy, executive director of IATP, said: “The era of cheap chemical fertilisers is over.
“To reduce prices and protect food production, governments must end corporate profiteering, stop the overuse of chemical fertilisers, boost the production of organic alternatives, and redirect public spending towards agroecological farming practices that cause less harm than chemical fertilisers.”
The surge in fertiliser prices is putting farmers and Government budgets under severe economic strain and contributing to food price inflation, with the UN warning harvests could be hit if prices remain high.
The report was published as Reuters reported Russia had requested sanctions be eased to allow Russian grain and fertiliser traders to process payments and access vessels, insurance and ports.
Last week, Russia withdrew from an agreement to keep the Black Sea grain corridor open, but rejoined just four days later.
