When a farmer applies fertilizer to a field, the bag or bulk load they’re spreading has already passed through one of the most complex supply chains in global agriculture. From deep mines in Canada to ammonia plants in Trinidad and blending facilities in sub-Saharan Africa, fertilizers travel across continents before reaching the soil. Understanding that journey is key to making sense of costs, risks, and opportunities in the industry.
From Raw Material to Nutrient
The supply chain starts at the raw material level. Nitrogen fertilizers are made from natural gas or coal, which are converted into ammonia through the Haber–Bosch process. Phosphate fertilizers come from phosphate rock, mined in countries like Morocco, China, and the US, then processed into phosphoric acid and further into DAP, MAP, or TSP. Potash comes from underground evaporite deposits, mined in Canada, Belarus, or Russia, and refined into muriate of potash (MOP).
Each of these inputs has its own geopolitical risks. Gas markets are volatile, phosphate reserves are concentrated in a handful of countries, and potash trade is dominated by just a few players. That concentration makes fertilizers unusually vulnerable to shocks.
Processing and Conversion
Once raw materials are mined or synthesized, they are processed into fertilizers. Ammonia may be upgraded into urea or ammonium nitrate. Phosphoric acid is granulated into MAP or DAP. Potash is crushed, sized, and sometimes converted into SOP or specialty salts.
Some of this processing happens at integrated sites near mines or gas fields, while in other cases materials are shipped elsewhere for upgrading. These decisions are often based on logistics and energy costs.
Logistics and Trade
The fertilizer trade is heavily maritime. Bulk carriers transport urea, DAP, and MOP across oceans, often from a handful of major export hubs:
- Urea: Middle East (Qatar, Saudi Arabia), North Africa, China.
- Phosphates: Morocco, China, Saudi Arabia, US.
- Potash: Canada, Russia, Belarus.
Fertilizers are typically quoted and shipped on an FOB (free on board) or CFR (cost and freight) basis, with prices published by market reporters. Port closures, freight bottlenecks, or sanctions can immediately reroute supply chains, as seen when Belarusian potash exports were restricted in 2022.
Blending and Distribution
Once fertilizers arrive in importing countries, they rarely go straight to farmers. Instead, they are stored, repackaged, or blended. NPK blends are tailored to local soils and crops. Fertilizers may also be fortified with micronutrients or coatings. Local distributors and cooperatives then sell to retailers or directly to farmers, often on credit.
This last mile is where farmers encounter the product, but it is also where inefficiencies and mark-ups often creep in. In many developing regions, poor infrastructure raises costs significantly.
Why the Supply Chain Matters
Every step adds risk and cost. A disruption at any link — a gas price spike, a mine closure, a shipping blockade, or a port strike — can cascade quickly into higher costs for farmers. Conversely, improvements in logistics or financing can make fertilizers more affordable and accessible.
The fertilizer supply chain is also where sustainability debates are playing out. Should nitrogen production shift to green ammonia? Can phosphate mining become less polluting? Can digital platforms streamline distribution in Africa? These questions are shaping the industry’s future.
The Outlook
The fertilizer supply chain will remain global, complex, and politically exposed. Companies and governments are looking for resilience: diversifying sourcing, building domestic blending capacity, and experimenting with local production of green ammonia or organics. But the fundamentals won’t change soon — fertilizers will still move across oceans, and global farmers will remain dependent on a handful of critical production centers.
In short: Fertilizers are not just inputs; they are the end of a global chain of mining, chemistry, and logistics. Knowing that chain helps explain why a price move in Qatar or a sanction in Belarus can change the cost of growing maize in Kenya.
