Canada’s fertilizer industry has global scale and significance. Canada is the third largest fertilizer-producing country, supplying North American and international markets while contributing $42 billion to the Canadian economy annually and employing over 118,000 workers throughout the supply chain.
Canada produces some of the most sustainable fertilizer in the world. Our potash is produced with 50 per cent lower greenhouse gas emissions intensity compared other countries, and our ammonia fertilizers are manufactured with at least 30 per cent lower net emissions intensity than other jurisdictions.
In short, we are essential to an abundant food supply for the world, and as Canadians would expect, we are doing so responsibly and sustainably.
Today there is a growing consensus in Canada that we need to diversify markets for Canadian products. If we are going to be successful, we will need to urgently address a growing number of concerns about Canada’s competitiveness:
- Canada is alone in putting a direct price on carbon among major fertilizer-producing jurisdictions, outside of the European Union. As a trade-exposed industry, our producers cannot pass these additional costs down the supply chain, making carbon pricing particularly damaging. According to a recent study that looked at carbon policies in effect in January, Canada’s fertilizer producers are already paying more than $200 million in direct and indirect carbon costs annually, with scheduled increases each year that would amount to $410 million* in annual costs by 2030. These discrepancies undermine investment and threaten to increase Canada’s reliance on other fertilizer-producing nations like Russia that do not share our values.
- Tariffs and the ongoing threat of tariffs on fertilizer will undermine Canadian fertilizer production and fair and open trade. It will distort the U.S. market in favour of other foreign suppliers who do not operate under the same environmental, human rights and trade practices. Broad-based tariffs, including Canadian retaliatory tariffs, between countries like the U.S. and Canada that have open and fair trade place unnecessary burdens on Canada’s agriculture wholesale and retail sectors, and the farm sector, and should be avoided.
- Canada is seen as an unreliable trading partner due to a history of frequent, recurring labour disruptions, railways stretched to capacity, and a growing need for investment in supply chain infrastructure.
These competitiveness risks are significant and growing. That is why it is crucial for our governments to act with urgency to resolve issues that threaten the viability of Canadian operations, threaten our farmers and eventually lead to significant inflation for families.
Fertilizer Canada looks forward to working with the next federal government to address these challenges and help secure a pro-growth, independent, and globally competitive future for Canada.
*If fuel charges remain at zero these costs would be revised to reflect lower fuel costs throughout the supply chain.
