Fertilizer production becomes strategic amid global energy volatility

Global volatility in energy markets and the ongoing conflict between Russia and Ukraine have heightened the strategic importance of fertilizer production. Because ammonia production relies heavily on natural gas, fluctuations in energy costs directly impact agricultural supply chains.

Mexico remains a net importer of fertilizers, with imports totaling $2.328 billion in 2024 compared to $346 million in exports. Russia has been the primary supplier, accounting for $582 million in sales, followed by the United States, China, Qatar, and Norway.

In the Mexican state of Sinaloa, the recovery of water availability following recent droughts has increased the need for timely access to competitive fertilizer inputs. To address supply needs, the company Proman is constructing a fertilizer plant in Topolobampo, Sinaloa. The project involves an investment exceeding $1.8 billion and aims for an annual capacity of approximately 800,000 tons.