U.S. Deputy Agriculture Secretary Stephen Vaden reprimanded The Mosaic Company over the fertilizer producer’s decision to idle two phosphate mines in Brazil despite a strain on global supply of crop nutrients.  

“You take a million tons of supply out of the international market, that affects the price worldwide, and it will only lead to one thing – higher prices,” Vaden said at a meeting of North American Agricultural Journalists in Washington. “At a time when everyone else is saying we need more supplies of nitrates, urea, phosphate, potash across the board, why would they cut supplies?”

In response to an Agri-Pulse request for comment, Mosaic referred to its April 8 news release on the Brazilian operations. Mosaic at the time said the move to shutter and sell some of its Brazilian assets is aimed at cutting costs and redeploying capital.

 As part of its efforts to reduce costs and redeploy capital, the Mosaic company today announced it will begin the process of idling and demobilizing its Araxá Mining and Chemical Complex and idling related mining activities at the Patrocínio Complex in Brazil. These actions will result in workforce reductions at both sites. 

Vaden said he’s speaking with Mosaic representatives later this week. The native Tennessean has a history with Mosaic. In 2023, as a judge on the Court of International Trade, Vaden ruled that the International Trade Commission (ITC) used flawed facts and logic in its determination that the products of Moroccan fertilizer giant OCP unfairly hurt U.S. producers.

The deputy ag secretary noted on Monday that about five years ago, as a judge in the case, he fought an effort led by Mosaic to keep the case filings sealed. Vaden said the Tampa, Florida-based company is still “playing games.”

“What possible motivation, other than further constraining supply, selling uncertainty and padding their already sufficient profit margins, could they possibly have” to idle production? Vaden asked. At the same time, the company is trying to convince the commission there’s an oversupply of fertilizer in the world, and that the countervailing duty is critical, he added.

Vaden also said that the recent call by top fertilizer maker Nutrien to lift countervailing duties on phosphate fertilizer from Russia and Morocco came shortly after he met with representatives from the Canadian company.

“Based on evolving global phosphate supply and demand dynamics since 2021, we believe removing countervailing duties on phosphate imports would be a constructive step that supports U.S. farmer economics, balanced fertilizer application and agricultural productivity,” a Nutrien spokesperson told Agri-Pulse in March.

Interested in more news on farm programs, trade and rural issues? Sign up for a four-week free trial to Agri-Pulse. You’ll receive our content - absolutely free - during the trial period.   

Related Articles

Nutrien has been one of the main beneficiaries from the countervailing duties in place since 2021.

Vaden's comments come just two days after President Donald Trump took a swipe at the fertilizer industry giant. In a social media post Saturday, the president suggested the U.S. suffered from a fertilizer "monopoly" and accused the sector of “price gouging" U.S. growers. 

Mosaic hit back in its own post just hours later arguing that fertilizer prices depend on a range of global market factors and rejecting the notion that individual producers set market prices. 

"In fact, U.S. prices are lower than in other key agricultural regions of the world," Mosaic wrote. 

Agriculture Secretary Brooke Rollins weighed in on Monday with her own post to X, formerly Twitter. 

"So disappointed in this response," she said of Mosaic's post, "especially as you decide to idle two fertilizer production facilities." 

In January, Vaden also accused Nutrien and Mosaic of working to “collude” to limit U.S. fertilizer supply and control prices, suggesting that the administration could take future action to inject more competition into markets, if necessary.

Oliver Ward contributed to this report.

For more news, go to Agri-Pulse.com.