Skyrocketing Sulfur Prices Threaten Global Fertilizer Supply and Food Costs

The cost of sulfur, a critical ingredient in agricultural fertilizers, has reached unprecedented levels, posing a significant threat to global food prices and farming operations. The price for sulfur skyrocketed from $46 per ton in 2024 to $180 per ton in 2025, with spot prices exceeding $1,000 per metric ton in July.

This volatility has immediate consequences for the food industry. Mosaic Company, a major phosphate fertilizer producer, confirmed that exorbitant sulfur costs have forced it to shut down two facilities in Louisiana, affecting approximately 300 employees. A company spokesman told AgWeb that the extreme pricing is expected to lead to a significant reduction in phosphate fertilizer usage globally.

While the United States produces its own sulfur, it is not insulated from the global disruption. Key suppliers in the Middle East, including Iran, are unable to export effectively due to the closure of the Strait of Hormuz following recent conflict. Additionally, Russian sulfur exports remain banned in many Western markets. Consequently, international buyers are turning to U.S. suppliers, driving domestic prices higher for companies like Mosaic.

Economic analysts warn that these factors will compound existing inflationary pressures. Oxford Economics projects that global food prices could rise by an additional 4.8% in 2027, citing the combined impact of elevated diesel costs and fertilizer shortages. Even if the Strait of Hormuz reopens, economists expect higher oil and fertilizer prices to persist as the market adjusts and reserves are replenished.