Canada is the largest producer and exporter of potash - the key
ingredient in fertilizers - and 75% of all the fertilizer
produced and used in the country is moved via the railways.
The railways move an average of 69,000 metric tons of fertilizer
product per day, equivalent to four to five trains, according to
Fertilizer Canada.
"Our industry continues to be very concerned by the potential of
a dual rail disruption and the cascading impacts on Canada's
economy and global food security," the organization said in an
emailed statement.
The fertilizer industry contributed about $12 billion to
Canada's gross domestic product last year.
The organization, which represents producers like Nutrien and CF
Industries, said last week the industry had already begun to
feel the effects of the labour disruption, as the railways
issued embargoes that impacted some ammonia fertilizer products
and halted their movement.
Since 2018, seven supply chain labour disruptions have cost the
fertilizer industry an estimated $976 million in lost sales
revenue.
(Reporting by Mrinalika Roy in Bengaluru; Editing by Devika
Syamnath)
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