One of the primary drivers of fertilizer prices is the cost of raw materials. Fertilizers are primarily made from nitrogen, phosphorus, and potassium, which are derived from natural resources. The prices of these commodities can be affected by mining regulations, energy costs, and geopolitical factors that impact production. For instance, the global demand for potash has increased due to its critical role in crop nutrition, leading to higher prices. Similarly, supply disruptions caused by geopolitical tensions can escalate costs significantly, as seen during conflicts that affect key exporting nations.
