Ghana’s Chamber of Agribusiness has come bearing bad news, warning of the potential price hike in the prices of food commodities in the country due to a continuous increase in the price of fertilizer worldwide.
The chamber of agribusiness has said that the hikes in fertilizer price international has resulted in a shortage of fertilizer which they say could impact the growth and harvest of food in the country. In a statement, the chamber has predicted that the prices grains and cereals are expected to rise exponentially in the first quater of 2022.
“Unfortunately, fertilizer is currently in short supply, especially fertilizers of the synthetic variety, primarily due to the soaring gas prices. Soaring natural gas prices have forced the closure of two large UK fertilizer plants, sparking warnings of a looming shortage of ammonium nitrate that could hit food supplies as record energy prices start to reverberate through the global economy. At those rates, it is costing fertilizer manufacturers a lot more to produce, and they cannot purchase natural gas at the current price to produce and make profit,” it said.
The Chamber added that, “Food inflation is imminent. As a net importer of fertilizer with no manufacturing capacity, the shortage is expected to drive up fertilizer prices, which increases a major component of farmers crop budget: Food prices, especially grains and cereals are expected to increase significantly from the first quarter of 2022 through to the second quarter of 2023. Cereals and grains will see a surge between 30 and 45 percent with a higher percentage increase at the urban areas within the same period.”