Fertilizer Canada says stoppage will devastate Canada’s potash industry
The recent work stoppage at Canada’s West Coast ports has caused major disruptions to the potash fertilizer industry, which plays a crucial role in both the Canadian economy and global food security.
The work stoppage started on November 4 and has hindered the movement of over 21,000 tonnes of potash daily, resulting in significant financial losses and affecting Canada’s reputation as a reliable supplier.
Each day of halted operations means up to $9.7 million in lost sales, according to Fertilizer Canada.
As the world’s leading potash producer, Canada supplies 40% of global potash, exporting 95% of it to over 75 countries. This valuable export product is essential for food production worldwide, and interruptions threaten to push international customers towards other suppliers, such as Russia and Belarus.
Fertilizer Canada is calling on the federal government to take immediate action to resolve the work stoppage. They are also urging for an amendment to the Canada Labour Code to ensure that fertilizer products can continue to move through ports even during labour disputes.
Recent polls indicate strong public support for continuous shipments of essential goods like fertilizer, with eight out of 10 Canadians in favor of uninterrupted movement during work stoppages.
This work stoppage is further compounded by ongoing labor issues at the Port of Montreal – which has now turned into a strike. These work stoppages adding increased pressure on Canada’s supply chain.
In 2023, a similar disruption at West Coast ports resulted in $126 million in losses for the fertilizer industry and lost Canadian market share in major regions like Indonesia and Malaysia.
Karen Proud, President and CEO of Fertilizer Canada, highlighted the urgency, stating, “Fertilizer is essential to food security, and this stoppage will have a devastating impact on Canada’s potash industry. We need the government to act quickly to secure our position as a reliable supplier.”
In Canada, the fertilizer industry is integral to the economy, contributing over $42 billion annually and supporting more than 100,000 jobs. Fertilizer Canada represents the industry by focusing on innovation, safety, and sustainable practices that benefit agriculture, food security, and the Canadian economy.
With planting seasons underway in the southern hemisphere, timely delivery is crucial for international customers, making the current work stoppage an urgent issue.
By strengthening supply chain stability, Canada can ensure its role in supporting global agriculture and maintaining food security worldwide.