The conflict in the Middle East is having a very significant impact on both energy markets and the global fertilizer supply chain, as the Strait of Hormuz is one of the most important maritime strategic points for the global trade of oil, gas, and fertilizers, and is a key pillar for agriculture. Regarding fertilizers:
- According to data from the International Fertilizer Association (IFA), approximately 18.5 million tons of urea were exported through the Strait of Hormuz in 2024.
- The Persian Gulf region has a very important fertilizer production, with Iran, Qatar, Saudi Arabia, the United Arab Emirates and Bahrain together accounting for 23 percent of the world ammonia trade, 34 percent of the urea trade and 18 percent of the ammonium phosphate trade.
- Approximately half of the world's sulfur trade, a key raw material in the production of phosphate fertilizers, travels along that route.
- Although in recent years Spain has hardly imported any urea from those countries, given that fertilizer markets are global, any temporary disruption of supply can have a rapid effect on the global market and affect fertilizer costs.
- The war in the Middle East has further worsened the already difficult situation of European industry, which was under great pressure, with some of the highest energy prices in the world.
- In Spain, manufacturing companies are making great efforts to continue their production activity in order to continue offering products to farmers, despite the high energy and raw material costs they are facing.
- However, if the situation continues or worsens and disruptions to trade routes persist, unfortunately the impact could increase and affect business activity, potentially leading to the closure of some production plants and jeopardizing the adequate supply of fertilizers for the next planting season.
Let's remember that:
- Mineral fertilizers are essential for feeding the world. It is estimated that approximately half of the world's population depends on crops produced with mineral fertilizers.
- The current situation has once again demonstrated that a strong national fertilizer industry is vital for food security.
- Ensuring farmers' access to fertilizers is fundamental to maintaining stable and competitive agricultural production in the long term, so it is necessary to strengthen aid to farmers and support the resilience of the fertilizer industry.