Hurricane Ian is barreling toward Florida, threatening production of phosphate used to make fertilizer. The disruption may add to the record costs of growing food in the U.S., Bloomberg reported.
Mosaic’s ( NYSE: MOS ) phosphate rock mines and factory that convert raw materials into diammonium phosphate (DAP) and monoammonium phosphate (MAP) are in Florida. The company’s New Wales facility may be offline for weeks depending on how damaging the storm is, according to Enki Research forecasts cited by Bloomberg.
Food production costs in the U.S. already were on course to jump by a record amount this year after Russia’s invasion of Ukraine crimped supplies of cereal grains.
Mosaic controls more than half of the 15.9 million metric tons of U.S. output of DAP and MAP fertilizers, most of which are in Florida, Bloomberg reported.
Food prices surged 11.4% in August from the prior year, partly driving an 8.3% jump in the consumer price index.
For further details see:
Ian may spur even higher food prices by disrupting fertilizer output: Bloomberg