Saskatoon, Saskatchewan-based Nutrien (NTR), the world's largest fertilizer producer, said it plans to increase potash production by nearly one million tonnes this year to a total of 15 million tonnes in response to supply disruptions in Eastern Europe.
Potash is a key ingredient for producing nitrogen-based fertilizers, and Russia and Belarus are the world's second- and third-largest producers of the commodity after Canada.
Potash prices have soared since economic sanctions were imposed on Russia over its invasion of Ukraine. Belarus, Russia's ally, has also been subject to European and U.S. sanctions that have restricted its potash exports.
Nutrien said the additional volume of potash will hit global markets in the second half of this year.
Meanwhile, Canadian Pacific Railway (CP), which moves potash fertilizer to Canadian ports and across the border to the U.S., has sent a lockout notice to its employees after talks with a union on wages and other issues failed, a move that could disrupt the supply of potash within Canada.
A lockdown at the railroad could have significant implications for potash transport to Canadian ports for shipment to overseas buyers, Nutrien has warned.
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