Video | Middle East Conflict Disrupts Fertilizer Transportation, Global Agricultural Production Affected

After Israel and the United States attacked Iran, not only did international oil, natural gas, and other energy prices soar, but the global fertilizer supply chain also experienced significant disruptions.

The Strait of Hormuz is a crucial global shipping route. According to a report by Al Jazeera on the 12th, disruptions in fertilizer supply will have a major impact on agricultural production in many regions.

Al Jazeera Host: In global trade, nearly one-third of urea needs to be transported through this key route to suppliers. At the same time, many parts of the world are in the spring planting season, so even a few weeks of delay could have a significant impact.

International fertilizer prices surge sharply, farmers’ costs increase dramatically

A report from the United Nations Conference on Trade and Development states that shipping costs—including freight, shipping fuel, and insurance—are rising, leading to increased transportation costs across the entire supply chain. Data shows that the main futures contract for urea on the Chicago Mercantile Exchange has increased by over 20% since February 28, prior to the US and Israel’s strike on Iran.

American agricultural experts warn that U.S. farmers will also be severely affected and may be forced to adjust their planting strategies.

Professor David Eble of Pennsylvania State University: The fertilizer market is a global market, so supply shocks in any part of the world will lead to price increases. Farms have some strategies to cope with rising nitrogen fertilizer prices, one of which is switching to soybeans. I expect that this year, about 1 to 1.5 million acres of land that would normally be planted with corn may be converted to soybeans, as legumes can absorb nitrogen from the air.