Impact of COVID-19 on the Global Specialty Fertilizers Market
COVID-19 has completely changed the lives of people across the globe, with the number of cases rising rapidly every day. The COVID-19 impact across industries varies. The outbreak has flipped the growth switch in every sector of the economy, and the agricultural industry is no exception. The pandemic has impacted the agricultural supply chain, as many countries are under lockdown and have sealed their borders to curb the spread of the virus. Strict containment measures imposed by governments of various countries and preventive measures to control the impact of the outbreak have led to a significant restriction in transportation, driving a knock-on effect globally.
The specialty fertilizers market has been mainly affected by logistics in this pandemic situation. The logistical precautions have caused a delay in shipments, which is hampering the supply chain of the specialty fertilizers market. The specialty fertilizer market has been affected primarily after the outbreak of COVID-19 in China, which is the most significant producer and consumer of phosphates, sulphur, and sulphuric acid. The spread of the virus in countries such as Brazil and India is further hampering the growth of the specialty fertilizers market.
With countries across the world locking down their borders, there have been minimum export-import movements, which has impacted the growth of the overall fertilizers market. The import trade analysis of developed and developing nations for the past few months have been analyzed below:
Import Trade Analysis of Fertilizers, MO4-2019 to MO3-2020
The impact of COVID-19 on logistics has hampered the supply of fertilizers. It is expected to result in a price hike of fertilizers, including specialty fertilizers if the trade barriers are further extended. Additionally, the manufacturers are facing production issues as they have either shut down production to ease employee concerns or are running production under-staffed. The procurement of ingredients has also become a cause of concern for the manufacturers owing to disruptions in logistics.
However, many agriculture-based countries, including India, are closely monitoring the production and distribution of the fertilizers to ensure an uninterrupted supply of soil nutrients to the farmers during the harvesting period amid the COVID-19 outbreak. As per the Indian Ministry of Chemicals and Fertilizers, real-time monitoring is being undertaken to tide over any issues in the production and supply chain by the Department of Fertilizers (DoF).
MRFR’s Covid-19 analysis reports suggest the emergence of several challenges being faced by the manufacturers of specialty fertilizers in developing countries. For instance, poor storage infrastructure, unavailability of labor, and logistics constraints are few challenges emerging in developing countries.