Fertilizer prices have risen sharply in recent months, following the rise of the global grain market, but fertilizer prices may not hit the 2008 high, as producers are well prepared for rising demand. According to Reuters, Caled Findlay, a UK-based Gleadell Agriculture trader, said, “I don’t think that fertilizer prices will approach those numbers (2008 highs. I think this is only the case.)†and added that demand soared in 2008. Businessmen are caught off guard. He pointed out: "Since then, fertilizer production capacity will increase and follow-up will be strengthened." Analysts said that production capacity has increased since prices rose in 2006-2008. The new fertilizer project will be put into production and delivery time is between 3-5 years. The rise in grain prices has stimulated farmers to use chemical fertilizers to increase their investment to increase output. They also increased the crop area. The US corn planting area this spring is expected to reach the second highest level since World War II. Despite this, analysts and producers said that there is limited room for growth in fertilizer prices this year. Riots occurred in North Africa and the Middle East last month, which gave some support to fertilizer prices. North Africa and the Middle East are the main producing areas due to their low energy costs. Ken Bowler, marketing manager of British fertilizer manufacturer GrowHow, said that the production of fertilizers such as ammonium nitrate requires a lot of energy, and natural gas accounts for more than 70% of production costs. European producers face more stringent environmental standards.
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