Mosaic Co., a major US phosphate fertilizer producer, is experiencing substantial financial difficulties, reporting a $273 million loss in the second quarter of 2026, a significant downturn from a $411 million profit in the same period last year. This loss is primarily attributed to a global sulfur shortage and sharply increased sulfur prices, which are critical for processing phosphate rock into fertilizers like diammonium phosphate (DAP) and monoammonium phosphate (MAP). The company's revenue also fell to $2.82 billion from $3.01 billion year-over-year, and its gross margin dropped nearly 59% to $214.7 million.
The sulfur shortage, exacerbated by geopolitical instability and maritime disruptions, particularly in the Strait of Hormuz, has forced Mosaic to dramatically cut phosphate production. The company's phosphate operating rates collapsed from 84% to just 47% in the second quarter of 2026. This has led to the temporary curtailment of nearly two million tons of US phosphate production, including reducing output by approximately half at its Bartow, Florida, and Faustina and Uncle Sam facilities in Louisiana. Additional production cuts have also been made in Brazil.
As a direct consequence of these production cuts and financial losses, Mosaic is eliminating 206 jobs across its Uncle Sam and Faustina facilities in Louisiana. While these actions are described as temporary responses to extraordinary market conditions, they have a significant impact on local communities. The company aims to maintain its facilities in a state that allows for quick production restarts once sulfur availability and economics improve. Mosaic had anticipated producing over 7 million tons of phosphate in 2026 but is now significantly reducing that target, with CEO Bruce Bodine indicating further cuts are possible if market conditions do not improve.
