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Welcome to this week’s edition of the Thomas Index Report.
According to Global Market Insights, the fertilizer market, estimated at $171 billion in 2020, is projected to grow to $213 billion by 2027. Recently, this market demand has been particularly accentuated due to COVID-related supply chain shortages and the ongoing Ukraine-Russia conflict.
Raw materials supporting the fertilizer market — including nitrogen, phosphates, potash, and sulfates — have been in especially high demand the last six months. According to Morgan Stanley, both Russia and Ukraine export roughly 28% of the world’s fertilizers, leading to disruptions in the global agricultural industry.
Suspended trade with Russia due to the war in Ukraine has caused many North American farmers to search for new suppliers. To help mitigate the supply shortfall, Canada — the world’s largest producer of potash — is ramping up production by 20% over the next five years. In conjunction with these efforts, mining company BHP recently announced a $7.5 billion commitment to expand mining facilities in the mineral-rich Canadian province of Saskatchewan by 2027.
Current shortages in fertilizer are likewise stressing an already overworked global food supply chain, requiring immediate action here at home. Recognizing the long-term challenges associated with this shortfall, the U.S. Department of Agriculture has announced a new $250 million grant program to support an independent and sustainable domestic fertilizer industry. According to the USDA, this investment will not only go a long way in establishing a reliable and sustainable agricultural supply chain but will also provide key incentives for integrating more innovative and ecological-based fertilizers in U.S. farming.
As expected, recent activity on our Thomasnet.com platform saw a dramatic 1,048% quarter-over-quarter increase in the sourcing of fertilizers, with a 26% increase year-over-year. This traffic will no doubt remain active as the world addresses the long-term implications of these shortages.
I am Cathy Ma and this is the Thomas Index Report.
Top 10 Categories with the Most Sourcing Activity Month Over Month
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- Tanks: Underground: 4662.5%
- Cable Assemblies: 3504.9%
- Lighting: LED, Industrial: 3463.6%
- Containers: Storage: 2327.3%
- Trailer Parts: 2305.0%
- Plastics: Compression Molded: 1980.0%
- Truck Parts: 1975.0%
- Sealants: 1873.0%
- Switches: Membrane: 1857.9%
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