BrownfieldAgNews reports:
The vice president of fertilizer with Stone X Group says recent events in Venezuela could have a long-term impact on the nitrogen market.
Josh Linville tells Brownfield, “Years ago, back before Chavez and Maduro took over, I believe their urea production capacity was something like 2.2 million tons, which has fallen off dramatically since that point in time.” He says, “So, if they can start to rebuild it, you know, now you start talking about adding more production there.”
He says increased stability in the region could also benefit nitrogen production.
“You start to look at Trinidad, a major UAN producer, a major anhydrous producer.” He says, “They’ve been struggling with really inadequate gas supplies. They wanted to expand out into untouched territorial waters. But with those waters being very close to Venezuela, they couldn’t ever make that happen.”
Linville says that worldwide production of UAN and anhydrous continues to be pressured by several geopolitical factors, so any additional supplies, even if long-term, could be welcome news for farmers.
