Feed & Grain Staff

Mar 22, 2022

Fertilizer, Supply Chain Turmoil to Grip Grain Industry

Jay Debertin, President & CEO of CHS, Inc. shared insights at NGFA Annual Convention

source: Elise Schafer

The Russia and Ukrainian War's impact on food security, fertilizer prices and agriculture supply chains will challenge producers and consumers over the next several months, said Jay Debertin, President & CEO of CHS, Inc., at the 126th Annual NGFA Convention.

"A lot of people in the world live on $20 a day," said Debertin, at the opening of his general session address in Charleston, SC. "And when food supply is interrupted and energy costs are what they are, that has an impact that frankly I think is hard to get our heads around because [in the United States] we don't have some of those same hurdles that people across the world are facing."

Ukraine and Russia export approximately 29% of the world’s wheat exports per week and account for 90% of the world's corn exports. For companies like CHS, Inc., the largest farmer-owned agriculture cooperative, global-scale food insecurity is a top-of-mind issue with exports halted out of the Black Sea.

Debertin also said high demand and limited supply for already high-priced fertilizer will come to a head this summer. Russia produces 11% of the world's fertilizer and it will be difficult for producers to secure alternative sources for next year.

"When it comes to supply, the price is exorbitant, but the fact of the matter is for spring this year, fertilizer is likely either on the water or in storage ready to go. With some exception around the edges, it's in pretty good physical condition."

Russia is an important piece of the American supply chain, but it's not likely they will engage in trade on a world scale for some time, resulting in disruption and possibly opportunity in the short-term, Debertin remarked.

"The integrated supply chains that we built will be tested, but we’ll find a way," he said. "That doesn't happen quickly with ocean freight and markets being called upon that typically wouldn't supply certain areas. But I think we have efficient systems across the world that will react, price will do its job in some respects, and the resources will get to where they're needed."

On the home front, Debertin applauded the passage of the Bipartisan Infrastructure Bill in 2021.

"I like to see spending going to waterways. Particularly as a company that ships a lot of products, the waterways are hugely important. I think the country is woefully behind on waterways spending, but I have a simple phrase for all the members of Congress: Thank you," Debertin said.

Elise Schafer

Sponsored Items

Recently Added to Buyer's Guide

AgraStrip Pro GMO Rapid Test Kits

  • Independent, simultaneous testing of up to four samples
  • Limits of detection as low as 0.1%

Granulex 5

  • Up to 30% reduction in energy consumption per ton
  • Connects to Bühler Insights to enable 24/7/365 data-based decision making

Automated Extrusion Control Systems

  • Designed for increased efficiency, higher production rates, reduced waste
  • Consistent results and quality across production lines, shifts and plants

Catwalks & Towers

  • Includes handrail trusses, outrigger trusses, and walk-thru truss style catwalks with standard spans over 200 feet
  • Welded sections and panels allow for easy field assembly while maximizing freight

Market+ Merchandise

  • Bid Management to upload or enter bids, easily adjust basis and other details, and publish to originators and farmers
  • Competitive insights to see how bids compare to other nearby bids

Hydro-Mix XT-FS Sensor

  • Designed to measure moisture in flowing material where there is a food safety requirement
  • Installed in ducting, conveying and mixing systems in process control environments


Marketwatch: Dec, 06

US Corn Price Idx: ZCPAUS.CM

open: 6.5328
high: 6.55
low: 6.4408
close: 6.4673

US Soybean Price Idx: ZSPAUS.CM

open: 14.2059
high: 14.2809
low: 14.1255
close: 14.1516

US Hard Red Winter Wheat Price Idx: KEPAUS.CM

open: 8.3708
high: 8.3933
low: 8.0459
close: 8.0561

US Soft Red Winter Wheat Price Idx: ZWPAUS.CM

open: 6.9245
high: 6.947
low: 6.6307
close: 6.6779