Potash Fertilizer Industry Severely Impacted by West Coast Ports Work Stoppage, Says Fertilizer Canada

OTTAWA, ON, Nov. 5, 2024 /CNW/ - Fertilizer Canada is warning about the severe impact of the West Coast ports work stoppage that began November 4, with potash fertilizer among the hardest-hit commodities. West Coast ports handle over 21,000 Mt of potash daily for export to global markets, and each day of a shutdown will result in up to $9.7 million in lost sales revenue. As the world's leading producer and exporter of potash—a key ingredient in global food security—Canada's disrupted supply chains risk ceding market share to competitors like Russia and Belarus.

Fertilizer Canada urges the federal government to act swiftly to resolve the work stoppage, using all available tools to prevent further harm to Canada's economy, our reputation as a reliable trading partner and global food security.

Potash production facilities have limited on-site storage that can quickly reach capacity. If potash can't move through the supply chain, it could lead to curtailments. The 2023 West Coast ports labour disruption cost the fertilizer industry an estimated $126 million, took 13 days to resolve and led to the curtailment of a potash mine and cancellations on sales offers from international customers due to the instability. In the months following the disruption, Canada lost significant market share to Russia in key markets such as Indonesia and Malaysia.

"Fertilizer is essential to food security, and this stoppage will have a devastating impact on Canada's potash industry," says Karen Proud, President and CEO of Fertilizer Canada. "Our overseas customers depend on us to deliver this crucial input. If we cannot supply them with Canadian-produced fertilizer, they will look to other countries, such as Russia and Belarus, who operate with far fewer environmental, safety and ethical protections. The time to act is now. We need the government to step up and strengthen our supply chains."

Fertilizer Canada is calling on the federal government to amend the Canada Labour Code section 87.7 to ensure the continuous movement of fertilizer products at ports during labour disputes. Polling shows that eight out of 10 Canadians support the uninterrupted shipment of products vital to domestic and global food security during work stoppages.

This stoppage is compounded by ongoing labour disruptions at the Port of Montreal, underscoring the urgent need for long-term solutions to stabilize Canada's supply chains.

Over the past six years, supply chain disruptions have cost the fertilizer industry nearly $1 billion in estimated lost sales revenue.

Fertilizer is responsible for half of the world's current food production, and with the southern hemisphere's spring planting season approaching, timely delivery is crucial for international customers.

Canada is the world's largest producer of potash, responsible for close to 40 per cent of global production, and exporting 95 per cent of it to over 75 countries. As a highly export-driven industry, Canadian fertilizer relies on port access to serve major international markets.

Fertilizer Canada represents producers, manufacturers, wholesale and retail distributors of nitrogen, phosphate, potash and sulphur fertilizers. The fertilizer industry plays an essential role in Canada's economy, contributing over $42 billion annually and employing 100,400 workers throughout the supply chain. We are committed to supporting the industry through innovation, stewardship, safety and security. As the foundation of Canada's agri-food sector, we apply innovative solutions that positively impact agriculture, the economy, and the social fabric of Canadian life.

SOURCE Fertilizer Canada

Contact Information: Kayla FitzPatrick, Senior Director of Communications, Fertilizer Canada, [email protected], [phone]