Communities Push Back Against Mosaic’s ‘Stranglehold’ on US Farmers

Rabat – US phosphate and fertilizer giant Mosaic is facing strong pushback from farmers and local communities as rising US fertilizer prices impact both food producers and consumers. After a difficult 2021 where the company faced several scandals, the new year holds new challenges as the corporate giant faces intense scrutiny.

A difficult 2021 for Mosaic was capped by a letter by US corn farmers who accused the company of prioritizing its profits over the needs of farmers across the country. A December 17 letter by the National Corn Growers Association (NCGA) lamented “the stranglehold Mosaic has placed on its customers.” The association’s press release highlighted that “the company’s monopoly is creating serious problems for farmers.”

Artificial monopoly

The farmers union pointed out that Mosaic’s monopoly does not come from fair competition, but was driven by political lobbying that led to the current price disparity between foreign and Mosaic products.

“As the second-largest phosphate fertilizer producer in the world, Mosaic has almost single-handedly erected an insurmountable tariff barrier to keep its top competitors in Morocco and Russia out of the U.S. phosphate market,” said NCGA’s letter.

The group pointed to Mosaic as the primary driver of a controversial 2021 decision by the US International Trade Commision (USITC) to impose hefty tariffs on imports from Morocco and Russia. It also highlighted that Mosaic pushed for the USITC decision to increase its profits despite the impact on farmers who are seeing their fertilizer costs skyrocket.

“Mosaic’s posture to date has been a masterpiece of irresponsible corporate social responsibility,” the NCGA letter stated. It went on to highlight how the USITC ruling is the equivalent of Mosaic effectively creating a monopoly for itself. The Mosaic-driven decision means that only 15% of foreign phosphate avoids significant price hikes through tariffs.

“Experts say that using Commerce and ITC to manipulate the supply curve does indeed dictate price to farmers,” the NCGA highlighted. The group then made a clear demand of Mosaic by writing: “We ask that you voluntarily withdraw your countervailing duties and allow critical supply back into the U.S. at a time of inadequate supplies and soaring phosphate prices.”

Struggling farmers

The NCGA letter comes at a time when farmers in the US are seeing fertilizer costs increase by as much as 80% in the span of a single year.

A new study by the Agricultural and Food Policy Center at Texa A&M University warns that 2022 will “wreak havoc” on US farmers. The study, which was published on January 6, highlights that fertilizer prices have “exploded over the past year.”

Commenting on the A&M study in agricultural outlet Agri Pulse, NCGA President Chris Edgington stated that fertilizer costs for farmers had “more than doubled,” while pointing to the USITC-imposed tariffs as a primary reason. “Morocco and Russia represent 15-20% of our domestic fertilizer demand and if you take that out of the market, prices go up,” he explained.

In an already volatile fertilizer market amid a global supply chain crisis, COVID-19 disruptions and rising production costs due to high gas prices, US farmers can ill afford Mosaic’s artificial monopoly according to the NCGA and others.

On a grander scale, Mosaic’s operations are having a negative impact not just in the short-term but also on future generations. Its failure to take climate change and sustainability seriously earned it the 86th ranking in the World Benchmarking Alliance’s 2021 Food and Agriculture Benchmark.

The ranking evaluated food-related companies’ commitment to sustainability and saw Mosaic being outperformed by all its main competitors, including those in Russia and Morocco which were pushed out of the US market through political games instead of fair competition.

Mosaic’s artificial monopoly means US farmers have few options left to choose for more sustainably produced fertilizers, like those of Morocco’s OCP Group which was declared the world’s fourth most sustainability-minded food business.

Worried communities

While farmers across the US see their fertilizer prices skyrocket and their income shrink, those communities living closest to Mosaic’s operations are in open revolt against the company.

An environmental disaster caused by a leaking waste storage facility in Mosaic’s Florida heartland brought renewed attention to the local industry and its controversial practices.

The leaking facility at Piney Point, near Tampa Bay, was not owned by Mosaic, yet local inhabitants were quick to point their finger at Mosaic as the elephant in the room. Ever since, the scandal has pitted worried local communities against state politicians which are firmly within Mosaic’s control due to the US system of campaign contributions that fuel political campaigns.

Local newspapers feature weekly opinion pieces and calls to action by those living closest to Mosaic facilities as they decry the company’s problematic safety record. Locals see the company as a threat to local water reserves and increasingly oppose any expansion of Mosaic’s massive mining operations that are situated within a relatively small area in Florida.

Mosaic has responded with half-hearted PR campaigns, even hiring the local American Football team, the Tampa Bay Buccaneers, to try to win back local hearts and minds. The initiative saw Mosaic promise to “tackle hunger,” by donating a measly $10 for each tackle the football team would achieve in its 2021 NFL season.

The amount Mosaic is set to donate is likely a tiny fraction of the amount it paid to the Buccaneers to help strengthen its local image.

The PR stunt proved an apt example of Mosaic’s disregard of Americans facing hardships due to both its monopolistic stranglehold on US farmers and consumers, and its lax safety standards for the communities where it operates.