US Edition
Farmers Warned to Plan Ahead as Fuel and Fertiliser Prices Surge
Conflict-driven oil price rises and Middle East supply disruptions have pushed fertilizer costs up 35%, causing significant concern for farmers globally, including in New Zealand.
- The Middle East conflict has forced disruptions to shipping routes including the Strait of Hormuz and fertilizer production, triggering volatility in global fertilizer markets and pushing up oil prices.
- Supply chokepoints including the Strait of Hormuz have curtailed flows, threatening about one-third of fertilizer trade as QatarEnergy temporarily halted urea and ammonia production.
- Market data show fertilizer spot prices up to 35 per cent higher, with cargoes rerouted to the United States and India confirming more than 500,000 tonnes of urea scheduled for delivery before March ends.
- Federated Farmers' David Birkett warned arable farmers face higher fertilizer and diesel costs, with a combine using about a thousand litres of fuel a day facing roughly $2,000 to $4,000 extra daily if fuel rises by $1 or 50 cents.
- For farmers and fertilizer buyers worldwide, the coming weeks will be critical as Southeast Asia buyers turn to Indonesia and Malaysia amid rising offers, while potash and muriate of potash remain steady.
21 Articles
21 Articles
Ontario Farmer
Middle East conflict sends shock waves through global fertilizer markets
Global fertilizer markets are entering another period of volatility as escalating conflict in the Middle East disrupts production, trade routes, and shipping logistics. The uncertainty is spreading across nitrogen, phosphate, sulphur and ammonia markets just as farmers in several regions prepare for their fertilizer application seasons.
The global fertilizer supply chain has been hit hard by the de facto blockade of commercial shipping through the Strait of Hormuz in the wake of the armed conflict between Iran, the United States, and Israel. Food security experts warn that the Middle East crisis could have repercussions even greater than the spike in grain prices that followed Russia's invasion of Ukraine in 2022.
A significant portion of the world's fertilizer is produced in the Persian Gulf, which is now trapped due to the Iran war. However, not all Estonian farmers have fertilizer stocked up for this season yet.
Coverage Details
Bias Distribution
- 81% of the sources lean Right
Factuality
To view factuality data please Upgrade to Premium
