Yes, there will be 25% less sulfur on the market, but there is sulfur on the market.
The number one producer of sulfur is U.S., so you would think maybe the Americans will be happy, with prices going up. But, talk to an American farmer in Iowa and he'll tell you fertilizer is available, but 70% more expensive. Same goes for all the products that require sulfur, the farmer needs pesticides to kill insects, mites, fungi, and rodents. Up 50% ... it all adds up. So, the farmer in Iowa says to himself "why should I plant this Spring, at these prices, when I will lose money in autumn?" so, are we looking at famine not only in poor countries, but countries like USA?
But, talk to an American farmer in Iowa and he'll tell you fertilizer is available, but 70% more expensive.
So, whole US agriculture get 70% more expensive fertilizer. IDK what part of final price fertilizer is, but let's imagine product will become 35% more expensive. People will pay 35% more for food, and will demand say 10% higher salary to compensate more expensive food. And nothing change, you will just need little more dollars in country to do the exactly same things and live excatly same life.
So, the farmer in Iowa says why should I plant this Spring, at these prices, when I will lose money in autumn?
Why should farmer lose money in autumn? If this fertilizer price hike is countrywide, then all other farmers will pay higher price for fertilizer and will rise the prices in autumn. Your farmer will do the same and will get his planned profit on harvest.
Consumers will have no choice but pay more in autumn for food. Not a big deal, especially if this is known beforehand. They will demand higher salaries. Everything become more expensive if measure it in local currency. I.e. local currency become cheaper. But things will not change at all, and there is no any reason for famine.
are we looking at famine not in poor countries, but countries like USA?
Look, I live in a country where prices change often and sometimes not by funny 70%, but by 1000%. And there was no any famine.
Money is nothing. People doing their jobs are everything. If we would have been looked at fucking excahnge prices and fancy plots and paniked like you, and make decisions like you assume farmer will make, we would all be dead long ago.
Don't panic, do your job, demand required salary risie according to prices, and that's all. Moreover, often shortages is an opportunity to create a new business. Find a way to obtain a fertilizer at only 50% higher price, add your 10% and sell it at 60% more. Those farmers who had to pay 70% more, will gladly buy from you and save 10%. It's really strange to tell this to the people who are known for a high skill in enterprising.
Consumers will have no choice but pay more in autumn for food. Not a big deal
It's your opinion, not mine. I believe paying more for something as essential as food IS A BIG DEAL for many people. Perhaps not as privileged as you are. Food prices have increased steeply over the last two years due to the war in Ukraine and other reasons, and now with the situation in the Persian Gulf are about to go through the roof. In my opinion food shortages and massive increases in food prices often contribute to revolutions, as seen in the French Revolution of 1789.
Famine is one of the main causes of empire collapse, and population decline. For example, during the fall of the Roman Empire, the climate changed, which resulted in famines and pestilences.
Increased prices of fertilizers and pesticides affect food supply in several ways:
Higher production costs. Fertilizers and pesticides are energy-intensive to manufacture, so rising energy prices lead to higher production costs, which are passed on to consumers in the form of higher food prices.
Reduced crop yields. Farmers respond to scarce supplies by purchasing and using less fertilizer, which can negatively impact crop yields for the next harvest.
Supply chain disruptions. The conflict in Iran and political instability in key producing Gulf countries in the region lead to supply volatility, impacting global availability and pricing.
Increased food prices. If fertilizer costs rise by 50% per unit of crop output, total farm production costs increase, which is then passed on to grocery prices.
paniked like you
I don't know where you come up with this "panic" thing from? I'm simply showing here one of the negative consequences from this very destructive war on Iran. If you don't care it's your business, just don't accuse me of panicking. I'm not.
I believe paying more for something as essential as food IS A BIG DEAL for many people.
Only if wages for some reason is not allowed to grow accordingly. And this could be done only intentionally. And if you can't rise your income (demand higher salary, increase production or whatever), then there is completely another problem to discuss, obviously not a price hike.
I don't know, may be I'm used to some other way of things, but here, when we have an obvious price hike, wages are come higher accordingly, regardless of any long-term contracts or whatever deals between employer and employee. This is force-majeure situation, and everybody understand that. If employer will not compensate this inflation, employee will find another employer who will.
In my opinion food shortages and massive increases in food prices often contribute to revolutions, as seen in the French Revolution of 1789.
If price is higher and wages are at same level, then people will buy less food. Where this shortages will come from, then?
Farmers respond to scarce supplies by purchasing and using less fertilizer, which can negatively impact crop yields for the next harvest.
So, farmers look at fertilizer prices, think that they have to buy less fertilizer, know that crop will be lower, and prices will be higher, and does not want to acquire larger part of market doing opposite than all other farmers will do? How is this? Where is all that American spirit of using opportunities and making more money?
If I know beforehand that crops will be lower, and prices will be higher, what stops me from using this opportunity to produce more, sell more for higher price and cover all possible expenses on more expensive fertilizer? I will even take a loan to buy more fertilizer with cheap current interest rate, and then easily pay it back when currency become times cheaper, due to higher food prices.
I don't know where you come up with this "panic" thing from?
It's just my impression, sorry. I would never bother to make a post about some market prices rise, especially if it is just around 25%, not even talking about less.
I would never bother to make a post about some market prices rise, especially if it is just around 25%
Sulfur and ammonium nitrate are commonly combined in fertilizers.
Some examples of such fertilizers are:
UAN (urea and ammonium nitrate) + S. This is a liquid nitrogen fertilizer with sulfur that combines the positive qualities of three nitrogen fertilizers: ammonium nitrate, urea, and ammonium thiosulfate.
Ammonium nitrate enriched with sulfur. This is a mixture of ammonium nitrate and ammonium sulfate (30% N, 6% S).
Fertilizers containing sulfur and ammonium nitrate are used in agriculture to provide plants with nitrogen and sulfur. They are applied in the pre-sowing phase or during the autumn vegetation for wheat and rapeseed.
Just to give you an example, Russia (I guess your country) just halted ammonium nitrate fertilizer exports to prioritize domestic farmers amid the ongoing Iran conflict. It's the supply & availability of sulfur that drives the price. And we're not looking at only 25% increase, that may be just just the start.
The number one producer of sulfur is U.S., so you would think maybe the Americans will be happy, with prices going up. But, talk to an American farmer in Iowa and he'll tell you fertilizer is available, but 70% more expensive. Same goes for all the products that require sulfur, the farmer needs pesticides to kill insects, mites, fungi, and rodents. Up 50% ... it all adds up. So, the farmer in Iowa says to himself "why should I plant this Spring, at these prices, when I will lose money in autumn?" so, are we looking at famine not only in poor countries, but countries like USA?
So, whole US agriculture get 70% more expensive fertilizer. IDK what part of final price fertilizer is, but let's imagine product will become 35% more expensive. People will pay 35% more for food, and will demand say 10% higher salary to compensate more expensive food. And nothing change, you will just need little more dollars in country to do the exactly same things and live excatly same life.
Why should farmer lose money in autumn? If this fertilizer price hike is countrywide, then all other farmers will pay higher price for fertilizer and will rise the prices in autumn. Your farmer will do the same and will get his planned profit on harvest.
Consumers will have no choice but pay more in autumn for food. Not a big deal, especially if this is known beforehand. They will demand higher salaries. Everything become more expensive if measure it in local currency. I.e. local currency become cheaper. But things will not change at all, and there is no any reason for famine.
Look, I live in a country where prices change often and sometimes not by funny 70%, but by 1000%. And there was no any famine.
Money is nothing. People doing their jobs are everything. If we would have been looked at fucking excahnge prices and fancy plots and paniked like you, and make decisions like you assume farmer will make, we would all be dead long ago.
Don't panic, do your job, demand required salary risie according to prices, and that's all. Moreover, often shortages is an opportunity to create a new business. Find a way to obtain a fertilizer at only 50% higher price, add your 10% and sell it at 60% more. Those farmers who had to pay 70% more, will gladly buy from you and save 10%. It's really strange to tell this to the people who are known for a high skill in enterprising.
It's your opinion, not mine. I believe paying more for something as essential as food IS A BIG DEAL for many people. Perhaps not as privileged as you are. Food prices have increased steeply over the last two years due to the war in Ukraine and other reasons, and now with the situation in the Persian Gulf are about to go through the roof. In my opinion food shortages and massive increases in food prices often contribute to revolutions, as seen in the French Revolution of 1789. Famine is one of the main causes of empire collapse, and population decline. For example, during the fall of the Roman Empire, the climate changed, which resulted in famines and pestilences.
Increased prices of fertilizers and pesticides affect food supply in several ways:
I don't know where you come up with this "panic" thing from? I'm simply showing here one of the negative consequences from this very destructive war on Iran. If you don't care it's your business, just don't accuse me of panicking. I'm not.
Only if wages for some reason is not allowed to grow accordingly. And this could be done only intentionally. And if you can't rise your income (demand higher salary, increase production or whatever), then there is completely another problem to discuss, obviously not a price hike.
I don't know, may be I'm used to some other way of things, but here, when we have an obvious price hike, wages are come higher accordingly, regardless of any long-term contracts or whatever deals between employer and employee. This is force-majeure situation, and everybody understand that. If employer will not compensate this inflation, employee will find another employer who will.
If price is higher and wages are at same level, then people will buy less food. Where this shortages will come from, then?
So, farmers look at fertilizer prices, think that they have to buy less fertilizer, know that crop will be lower, and prices will be higher, and does not want to acquire larger part of market doing opposite than all other farmers will do? How is this? Where is all that American spirit of using opportunities and making more money?
If I know beforehand that crops will be lower, and prices will be higher, what stops me from using this opportunity to produce more, sell more for higher price and cover all possible expenses on more expensive fertilizer? I will even take a loan to buy more fertilizer with cheap current interest rate, and then easily pay it back when currency become times cheaper, due to higher food prices.
It's just my impression, sorry. I would never bother to make a post about some market prices rise, especially if it is just around 25%, not even talking about less.
Sulfur and ammonium nitrate are commonly combined in fertilizers. Some examples of such fertilizers are:
Fertilizers containing sulfur and ammonium nitrate are used in agriculture to provide plants with nitrogen and sulfur. They are applied in the pre-sowing phase or during the autumn vegetation for wheat and rapeseed.
Just to give you an example, Russia (I guess your country) just halted ammonium nitrate fertilizer exports to prioritize domestic farmers amid the ongoing Iran conflict. It's the supply & availability of sulfur that drives the price. And we're not looking at only 25% increase, that may be just just the start.