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Chinese agriculture production costs affected by higher fertilizer prices

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World Fertilizer,

According to Reuters, agriculture production costs in China are set to rise quickly this year due to the higher cost of pesticide and fertilizer.

Tang Ke, the director of the agriculture ministry’s market and economic information department, reportedly said that domestic urea prices increased by 34% in December on a year earlier, and that compound fertilizer increased by 17.1% because of higher raw materials prices and decreasing operating rates at fertilizer producers.

Tang added that, together with emerging environmental protection costs and the higher prices of agricultural machinery, “agriculture production costs in China are expected to go back to a relatively fast rising channel in 2018, after staying at stable levels in the past two years.”

These comments follow the Chinese government’s efforts to ensure sufficient fertilizer supplies and stable prices before spring planting takes place. These steps were necessary because of a gas supply crunch that has tightened urea and other gas-based fertilizer supplies.

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