News and Articles

• Mosaic is reviewing phosphate production plans in the United States and Brazil.
• Partial phosphate production curtailments are starting in May.
• 2026 capital spending guidance was reduced to $1.25 billion.
• Sulfuric acid, sulfur, ammonia, and urea costs are pressuring margins.
• Fertilizer buyers face higher supply and contract risk.

The Mosaic Company is reducing phosphate production plans after a sharp rise in raw material costs hit the economics of fertilizer output. The U.S.-based fertilizer producer said its phosphate production plan in the United States and Brazil is under review because of raw material constraints, with partial curtailments beginning in May. The company also lowered expected 2026 capital spending to $1.25 billion by deferring less time-sensitive projects.

The pressure is concentrated in phosphate fertilizers, where sulfuric acid, sulfur, ammonia, and urea are key cost drivers. Agri-Pulse reported that Mosaic is reducing domestic phosphate production as sulfuric acid prices climb, a move that could tighten supply of a major crop nutrient at a sensitive point for fertilizer buyers.

The company reported a first-quarter net loss of $257.6 million, or 81 cents per share, compared with net income of $238.1 million a year earlier. Net sales rose to $3 billion, but higher input costs and charges tied to operations weighed on earnings. Mosaic’s phosphate segment sold 1.9 million tonnes during the quarter, while its potash segment sold 2.2 million tonnes and Mosaic Fertilizantes sold 1.6 million tonnes.

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For procurement teams, the main risk is that higher input costs may limit how much phosphate supply is available at workable margins. Producers may run plants below target rates, defer spending, or reduce output where feedstock economics are unfavorable. That can affect availability of products used by growers, distributors, cooperatives, and large agricultural buyers.

The move also affects fertilizer contract talks. Buyers may face shorter price validity, tighter delivery commitments, and more resistance from suppliers on discounts or fixed-price terms. Distributors may become cautious on inventory if price direction remains unstable, but delaying purchases can create exposure later if curtailments reduce spot availability.

The issue is not limited to one company’s balance sheet. Phosphate fertilizer depends on a chain of inputs that includes sulfur, ammonia, and sulfuric acid. When these costs rise quickly, the pressure can pass through to finished fertilizers or lead producers to pull back supply. For buyers planning around planting and application windows, the practical response is to track supplier operating rates, review alternative origins, and avoid relying on last-minute spot purchases where possible.