Europe’s fertiliser market is sliding into crisis just as farmers enter the most critical phase of the growing season. With the Strait of Hormuz disrupted by the war involving Iran, shipments of key fertiliser ingredients have stalled while gas prices surge across Europe. The result is a sharp rise in fertiliser costs — and growing fears that the continent’s food supply chain could soon feel the strain. Hormuz Blockage Strangles Global Fertiliser Trade The crisis centres on the Strait of Hormuz, a narrow waterway through which roughly a third of global fertiliser trade passes. Supplies of urea and ammonia from Gulf producers including United Arab Emirates, Saudi Arabia and Qatar have been disrupted since the escalation of the Iran conflict at the end of February. Without those shipments, European importers are scrambling to secure supplies during a crucial moment for spring planting. Gas Prices Ignite a Second Cost Explosion At the same time, the benchmark Title Transfer Facility price has surged from roughly €32 to nearly €52 per megawatt hour in just weeks. That jump hits fertiliser production directly. Natural gas accounts for roughly 80 per cent of the cost of manufacturing nitrogen fertilisers, meaning even modest energy spikes quickly ripple through agricultural markets. Across parts of Germany, key fertilisers such as calcium ammonium nitrate have already risen around 15 per cent in a month. Farmers Feel the Squeeze on the Ground For farmers, the numbers are becoming brutal. Saxony-Anhalt farmer Paul Henschke says urea now costs about €550 per tonne while calcium ammonium nitrate sits near €370. Just the first fertiliser application can cost €70 per hectare — before other inputs are added. At the same time, feed wheat sells for roughly €168 per tonne, leaving margins dangerously thin. Russia’s Shadow Over Europe’s Fields The turmoil is exposing another vulnerability: Europe’s continued reliance on Russian fertiliser. According to the European Commission, around 22 per cent of EU fertiliser imports in 2025 still came from Russia. With Gulf supplies disrupted, traders are once again turning to Russian producers — despite EU tariffs imposed last year on Russian and Belarusian fertiliser exports. Food Security Risks Begin to Surface Industry groups warn the crisis goes beyond price spikes. The Federation of German Industries says prolonged disruption could also cut supplies of sulphur and other chemical inputs tied to Gulf gas production. If shortages deepen, the consequences will stretch far beyond European farms. Fertiliser shortages could ripple into food markets across Africa and the Middle East — raising the spectre of higher prices, political instability and new migration pressures. Europe's fertilizer crisis: prices surge due to Iran war and dependence on Russia
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