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The Green Lining of the Fertilizer Shortage PDF Print E-mail
Written by Kiki Hubbard   
Friday, 17 October 2008

The demand for synthetic fertilizer has surged in the last few decades. Fertilizer companies' profits are increasing at a suspicious rate yet a limited supply may open the door to alternative fertilizer sources that are better for the planet.

How did this happen? For starters, less developed countries are increasingly adopting a Western diet, meaning meat consumption is on the rise and in turn grain production for animal feed. Add this to the expansion of biofuel acreage, and you have much more conventional grain in cultivation demanding more fertilizer.

Although fertilizer companies are ramping up production by building at least 50 new factories, experts say the shortage likely won't go away. Since industrial fertilizers are fossil fuel based, oil shortages will impact the supply, at the very least the price.

Actually, price is an issue now. Fertilizer prices paid in July 2008 were 104 percent higher than in July 2007, according to USDA figures. Mosaic, the world's largest phosphate and potash producer (major ingredients in industrial fertilizer), is the defendant in a lawsuit alleging price-fixing with other large potash companies. The fertilizer giant enjoyed a net profit of $2.1 billion in 2008 (five times its 2007 profit) and a 37 percent gross profit margin. Together, Mosaic's top five officers earned $14.3 million in 2008, 40 percent more than their 2007 pay.

But there's a green lining: an opportunity for farmers to reduce or eliminate their dependence on this fossil fuel based input. An increase in synthetic fertilizer use means devastating ecological and human health consequences. We've told you about the "dead zone" in the Gulf. The nitrogen levels in the Gulf have nearly tripled over the past 50 years, largely because of run-off from farm fields applied with synthetic fertilizers. If more farmers shift to green fertilizers, we can at least lessen the destruction of precious aquatic ecosystems and protect fisheries and the livelihoods that depend on them.

Source: Natural News, Graph: Paul Chefurka

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