Railroad workers start strike in Canada, and Brazilian agro fears the effects

Disturbances in potassium distribution logistics are a concern for farmers in Brazil

Dan Loran/UnsplashPacific Locomotive Canada, one of Canada’s leading rail companies

Minister of Manpower from the Government Canada, Seamus O’Regan, posted on Twitter that the train stoppage began on Sunday, 20. According to him, negotiations between Pacific Canada and unions are continuing in an effort to reach an agreement. Salaries and benefits are at the heart of the dispute, which has caused disruption to operations on the country’s second-largest rail line. HI agribusiness Brazilians worry that the distribution of fertilizers, such as potassium, a fertilizer imported from Canada, will be affected. Canada, that Russia e Belarus is a major potassium supplier to Brazil.

According to information from the Bloomberg Agency, the Canadian Pacific is the main route for potassium distribution from Canada’s Saskatchewan region to overseas markets. This means, with a strike, there is a risk of disruption to the logistics chain and possible delays in the delivery of raw materials. In Saskatchewan are located at least six potash mines of Nutrien, the world’s largest producer and supplier of Brazilian agro.

However, the train strike in Canada should be a one-time problem for fertilizer, evaluated StoneX consulting. Even if it’s a one-time issue, downtime is a challenge to manage. StoneX data shows that demand is about 25% higher than global supply of potash, meaning logistical delays could put additional pressure on already high fertilizer prices.

*This text does not necessarily reflect the opinion of Jovem Pan.

Laura Davis

"Total troublemaker. Alcohol aficionado. Social media specialist. Friendly travel nerd."

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