(Corrects currency to Canadian dollars from US dollars in title and paragraph 1)
Written by Merinalika Roy
Canadian Fertilizers warned Tuesday that disruptions affecting all rail services across the country will cost the fertilizer industry an estimated C$55 million (US$40.34 million) to C$63 million (US$46.21 million) in lost sales revenue, excluding logistics and operational costs.
Canada is the largest producer and exporter of potash – the main ingredient in fertilizer – and 75% of all fertilizer produced and used in the country is transported by rail.
The railroad moves an average of 69,000 metric tons of fertilizer products per day, which is the equivalent of four to five trains, according to Fertilizer Canada.
“Our industry remains deeply concerned about the potential disruption of the dual-track rail system and the cascading impacts on Canada’s economy and global food security,” the organization said in an emailed statement.
The fertilizer industry contributed about $12 billion to Canada’s GDP last year.
The organization that represents producers such as Nutrients CF Industries (NYSE:CF) said last week that the industry was already feeling the effects of labor unrest, with railroads issuing a ban that affected some ammonia fertilizer products and halted their movement.
Since 2018, seven supply chain disruptions have cost the fertilizer industry an estimated $976 million in lost sales revenue.
($1 = 1.3634 Canadian Dollar)
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