Fertilizer Canada has issued a warning that disruptions affecting rail services nationwide could lead to estimated losses of $55 million to $63 million per day in sales revenue for the fertilizer industry. This figure does not account for additional logistical and operational costs.
As the largest producer and exporter of potash, a key fertilizer ingredient, Canada relies heavily on rail transport, with 75% of its fertilizer moved by train. The railways typically transport about 69,000 metric tons of fertilizer daily, equivalent to four to five trains.
The organization expressed significant concern regarding the potential impact of a dual rail disruption, highlighting the cascading effects on both the Canadian economy and global food security. Last year, the fertilizer sector contributed approximately $12 billion to Canada’s GDP.
Fertilizer Canada represents major producers like Nutrien and CF Industries, and noted that the industry has already begun to feel the effects of recent labor disruptions, which have resulted in embargoes affecting some ammonia fertilizer products.
Since 2018, multiple supply chain labor disruptions have cost the fertilizer industry an estimated $976 million in lost sales revenue.