In some Central American countries the cost of granular fertilizers as a share of total production value per hectare increased by 45% to 66% for staples such as corn, beans, rice and potatoes from 2021 to 2022.

According to the World Bank analysis, one in five farmers reported having reduced the area planted to corn, beans, sorghum and rice. This poses a threat of further increases in food insecurity in a region where food inflation is on the rise.

The World Bank said that immediate policy responses are emerging throughout the region to address rising chemical prices.

Solid granular fertilizers, as opposed to soluble fertilizers, are the chemical fertilizers most used by small and medium farmers in Latin America 80-90% use them, because they are less expensive and do not depend on irrigation availability.

Also, global fertilizer prices have been rising since the late 2020s, as a result of disruptions in logistics chains and high energy prices.

In addition, the multilateral bank points out that things may get worse in the future if fertilizer use is reduced and food production contracts. Currently, around 50% of basic grains in the region are produced with granular fertilizers.

Translated by: A.M