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Canada’s Fertilizer Industry: A Key to Food Security in a Growing World

Fall in Canada is marked by vibrant colours, cozy sweaters, and comforting foods. It’s a season that brings us fall harvest, a time to gather around autumn-inspired dishes and the rise of pumpkin-spiced everything. Yet, amid all this abundance, few of us pause to consider what makes it possible. As the global population is projected to reach 9.7 billion by 2050, ensuring food security will only become more critical.

Fertilizer is the backbone of the agri-food sector, responsible for nearly half of the world’s food production. Nitrogen, potassium, and phosphate—commonly known as NPK—play essential roles not only in increasing yields but also in improving the taste, texture, and nutritional value of our food. For example, nitrogen supports the growth of leafy greens like spinach and lettuce, potassium enhances the sweetness and firmness of strawberries, and phosphorus is essential for the ripening of tomatoes.

Recently, we celebrated Global Fertilizer Day to honour the invention of the Haber-Bosch process to synthesize ammonia and the beginning of the green revolution that pulled millions of people out of famine and poverty, further demonstrating fertilizer’s role in global food security.

Canada is fortunate to produce two of these key nutrients—nitrogen and potash—which enables Canadian farmers and farmers worldwide, including allied nations, to access high-quality fertilizer produced under rigorous safety standards. According to studies from WSP and Cheminfo Services Inc., Canada also produces fertilizer with lower emissions intensity than our global competitors. 

Fertilizer Canada has championed nutrient stewardship for over a decade through our 4R Nutrient Stewardship program, advocating for the right nutrient source, applied at the right rate, time, and place. This science-backed approach helps farmers optimize fertilizer use, improving agricultural productivity, farm profits, and soil health. Supporting farmers in adopting 4R practices requires ongoing investment. While current incentive programs, like the On-Farm Climate Action Fund, are a start, we need to see significantly more support that is not solely dependent on government funding. A comprehensive carbon credit system based on a 4R Climate-Smart Protocol would help create a self-sustaining framework. Such a system, enabled by a national carbon market that aligns with existing provincial systems, could enhance our global leadership in responsible agriculture.

As we compete in a global fertilizer market, it’s essential to recognize the unique challenges faced by Canadian producers. Our competitors, such as Russia, Belarus, and China, operate without the same environmental and ethical standards, putting Canada at a disadvantage. Protecting our industry means safeguarding over 100,000 Canadian jobs and ensuring a reliable supply of fertilizer to Canadian and international farmers, all while preventing carbon leakage to products from jurisdictions with higher emissions intensity from gaining market share. The Canadian government has taken steps to support industry with clean investment tax credits (ITCs) aimed at decarbonization, but improvements are needed. The current limitations on ITCs must be addressed—extending the timeline, value, and scope to ensure they are effective for our sector. Investment in decarbonization technologies takes significant time and money, and our government needs to better assess the impact of environmental regulations on the Canadian fertilizer industry’s competitiveness and introduce more ambitious support.

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