Fertilizer Canada, an entity that represents fertilizer manufacturers, distributors, wholesalers and retailers in the country, asked on Sunday (20), in a statement, that the Canadian government take immediate action to mitigate the impacts on the fertilizer supply chain, after employees of Canadian Pacific Railway Ltd (CP Rail) went on strike, also on Sunday.

The shutdown of the sixth largest railway company in the Northern Hemisphere was announced by union leaders.

According to canadian pacific railway ltd. workers, negotiations for better working conditions and wage increases have not progressed. According to the union, which represents approximately 3,000 employees, negotiations began in September last year. Workers ask for increased wages, social security benefits and more time off.

In 2019, a one-week strike by Canadian Pacific Railway Ltd. generated approximately $238 million in losses, according to estimates by industry.

Reaction

Fertilizer Canada wrote that "disruption to essential rail service during the spring sowing season (in the Northern Hemisphere) will have devastating effects on farmers, the economy, and domestic and international food security."

"While Fertilizer Canada respects the collective bargaining process, we have reached a point where the government must act urgently. Every day matters when it comes to government intervention to end the strike. Fertilizer is the most important insum for crops and accounts for half of the world's current food production," he added.

"Canada cannot allow a supply chain disruption," says Karen Proud, President and CEO of Fertilizer Canada.

According to the entity, currently, 75% of all fertilizers in Canada are transported by rail.

Canada is one of the largest fertilizer producers in the world. In the case of potassium, it is the largest producer, with about 18 million tons per year.

According to Fertilizer Canada, around the world, the agricultural sector is already facing supply challenges exacerbated by the war in Ukraine and cannot withstand any more problems.

"Food security in Canada and other countries depends on maximizing crops this season to make up for last year. And fertilizer is fundamental to this", complements the entity.

On Twitter, Canadian Labor Minister Seamus O'Reagan said he is following the negotiations. He urged operations not to be halted and that the situation "could not happen at a worse time."

Impacts in Brazil

Brazil is the largest importer of fertilizers in the world. About 85% of fertilizers used in Brazilian agriculture come from abroad, according to a balance sheet by the National Association for the Diffusion of Fertilizers (Anda).

With the conflict in Eastern Europe and exports of supplies from Russia and Belarus, The Minister of Agriculture, Livestock and Supply, Tereza Cristina, traveled last week to Canada to seek alternatives for Brazilian producers.

At the meeting, which took place on Monday (14), Canpotex (short for Canadian Potash Exporters), canadian company of export and marketing of potassium, in operation since 1972, informed the minister that he intends to increase the volume of sales to Brazil beyond the current 4 million tons per year. ]

"We continue to talk to several suppliers so that our agro continues to ensure food security for Brazil and the world," the minister said at the time.

The Brazilian government has not yet commented on the situation in Canada or how the strike can impact the fertilizer market in the country.

Source: Canal Rural