Japan's fertilizer prices hit a 23 year high

Recently, the National Association of Agricultural Cooperatives of Japan announced the selling price of fertilizer from November to May next year. Due to the continuous conflict between Russia and Ukraine, the supply channel is not smooth, and the depreciation of the yen, the import cost increases. The price of seven of Japan's eight chemical fertilizer varieties has increased by 8% to 31% from June to October, setting a new high in Japan's chemical fertilizer prices since 1999.

According to the National Federation of Agricultural Cooperatives of Japan, Russia and Belarus are both major producers and exporters of fertilizer. Due to the conflict between Russia and Ukraine, the price of potassium chloride in Japan will rise by 31%, the price of phosphate fertilizer by 16% and the price of compound fertilizer by 10%. Due to the rising prices of natural gas and ammonia as raw materials of fertilizer, the price of domestic urea also rose by 11%, while the price of imported urea decreased by 9% due to the easing of international supply and demand. As the rising price of chemical fertilizer will put pressure on farmers' planting and management, the Japanese government proposed to vigorously promote the localization of chemical fertilizer in its comprehensive economic strategy formulated in October.