Fertilizer producer Nutrien to boost potash output amid global shortage
June 9 (Reuters) - Canada's Nutrien, the world's largest fertilizer producer, said on Thursday it plans to increase potash production to an annual 18 million tonnes by 2025 to mitigate supply uncertainty from Eastern Europe.
Prices of potash, a key input used in nitrogen fertilizers, have soared since Western sanctions were imposed against Russia for its invasion of Ukraine, exacerbating an already tight market.
"The challenge of feeding a growing world has never been clearer as global supply constraints have contributed to higher commodity prices and escalated concerns for global food security," said Ken Seitz, Nutrien's interim president and CEO.
"We see potential for multi-year strength in agriculture and crop input market fundamentals."
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The increase in potash production represents a rise of more than 5 million tonnes, or 40% compared to production in 2020, Nutrien said.
The company also said its annual nitrogen sales volumes could increase to about 13.5 million tonnes by 2027.
Nutrien will host a virtual investor day on Thursday to discuss its strategic initiatives, ESG (environmental, social and governance) performance and capital allocation priorities.
The company said in March it would raise potash output by 1 million tonnes to 15 million tonnes this year.
(Reporting by Rithika Krishna in Bengaluru and Rod Nickel in Winnipeg; Editing by Maju Samuel and Vinay Dwivedi)
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