Green Options

Last month, I wrote about the world’s largest leather exporter leaving the Amazon. This week there is even bigger news. The world’s largest meat exporter is leaving.

Just a couple of weeks ago, soya traders agreed to extend a moratorium on buying soya linked to Amazon destruction. However, as discussed in January, 80% of Amazon deforestation is from cattle farming. With continued involvement of major international organizations and companies — Greenpeace, McDonald’s, Nike, Wal-Mart, and Carrefour — a giant leap in protection of the Amazon was made a few days ago.

You know that times are changing when farmers look to manure as a valuable commodity. Pretty soon, manure from a herd may be more profitable than the beef itself. Manufactured fertilizers has tripled in price in the last year, driving farmers to look for alternatives. This is certainly an indicator of a shifting economy.

1. Energy Prices

Fertilizers are a very energy intensive product. Nitrogen fertilizers are commonly made from petroleum or natural gas. The potash and phosphates in the fertilizers are derived from mining, which also requires a lot of energy. Finally, the finished product needs to be transported and we know all about high gas prices.

2. Fertilizer Demand in China and India

China and India have increasingly been depending on fertilizer, causing a spike in demand. The price of fertilizer has climbed to $750 a ton.