Mosaic laying off 199 plant workers

Thanks much. So fertilizer producer Mosaic will be laying off nearly 200 workers at its South Fort Meade facility. We learned that today. They say that's a difficult decision that had to be made because of the impact of the ongoing sulfur crisis that it's having on the phosphate business. FOX 13's Carla Byron talked with an expert about how the global conflict with Iran and shipping problems in the Strait of Hormuz is impacting many international companies. Chemical giant Mosaic is pausing operations at its South Fort Meade fertilizer plant, resulting in the layoffs of approximately 199 employees. Mosaic made the decision because of ongoing supply chain challenges with sulfur, a key ingredient in fertilizer production. Sechkin Osgul, an assistant professor of supply chain management at the University of South Florida, says 40 to 45 percent of the world's sulfur travels through the Strait of Hormuz every year. With most of that sulfur being basically locked in, unfortunately, not being able to transport to the Strait of Hormuz, what is really happening is the supply of Hormuz has decreased throughout the world, which impacted availability. Therefore, when we have less supply, unfortunately, the demand is the same. The cost is going up. But Osgul says right now companies need to diversify suppliers and be competitive by entering into early contracts to ensure more supply. According to Mosaic, the pause is temporary and workers are expected to be laid off on December 8th. Mosaic's VP says they will continue evaluating market conditions and supply options to resume operations safely. However, they expect this shutdown to last more than six months. Osgul adds in the long run, if the situation continues, it could impact farmers unless they can diversify who they're buying from. Farmers may even decide to plant other crops to decrease the amount of fertilizer they use. What that means for you is we may not be able to see as much of a variety of foods coming from the farmers or the same kind of variety that we are used to. And if this does continue for a long time, we will definitely see that impacting some of the foods on our tables and the grocery shelves. In Fort Meade, Carla Byron, Fox 13 News. Osgul says even if the Iran war were to end tomorrow, it'll still take some time for supply chains to normalize.