Urea Fertilizer price and market analysis

Fertilizers are among the major production factors to increase agricultural output. They accounted for approximately 60% of the registered yield increase in the last 50 years. Consequently, if the agricultural sector is to produce sufficient feed and food for the future requirements of an additional 2 billion people by 2050, efficient access to fertilizers is a relevant issue, particularly in the least developed areas. In Africa, closing the gap between actual and potential agricultural yields, which could mitigate food insecurity, depends heavily on improved access to and use of fertilizers

the interplay among fertilizer prices, energy prices and commodity prices. what extent food and energy prices play a role in fertilizer price formation?

All their markets are interlinked and thus their prices affect each other.

• Firstly, fertilizers are linked to energy markets because the main input for their production is oil and gas.
• Secondly, fertilizers enter as an input into agricultural production and affect the productivity of the agricultural sector.More importantly, the use of fertilizer increases as the price of commodity prices increases.
• Finally, there is feedback from the food market to the energy market through its demand for energy in agricultural production (e.g. fuel).

The exact causal relationship between the three markets is an empirical question as it depends on many factors such as the size of the respective market, market structure, etc.