The United States Department of Justice is investigating several leading commercial fertiliser producers for potential collusion to inflate prices, according to sources familiar with the matter. The probe is focused on potential civil and criminal antitrust violations related to the companies’ pricing practices. The investigation is being conducted by the DOJ antitrust division’s Chicago office and is currently in its early stages.
The companies under scrutiny include major phosphate and potash suppliers such as Nutrien and Mosaic, as well as CF Industries Holdings, Koch, and Norway’s Yara International. CF Industries, Koch, Yara and Nutrien control a large portion of the nitrogen-based fertiliser sold in the US. Nutrien is a Canadian company that produces and distributes fertilisers and related agricultural products. Mosaic is an American company focused on producing concentrated phosphate and potash crop nutrients.
Concerns have been raised by farmers and government officials regarding the limited number of companies controlling the majority of fertiliser supply in the US. The Biden administration has also voiced concerns regarding elevated fertiliser prices, citing market concentration and the impact of the war in Ukraine as contributing factors. However, the companies have not yet been accused of any wrongdoing by antitrust officials, and investigations do not necessarily result in charges or lawsuits.
Nutrien did not provide an immediate comment. The other companies and the Justice Department have not yet responded to requests for comment. A spokesperson for the US Department of Agriculture referred inquiries to the Department of Justice.
