"This literally could not be happening at a worse time. The conflict in the Middle East is choking global supplies of fertilizer right before the crucial spring planting season, affecting American farmers already squeezed for months by tariff wars and threatening the global supply chain of essential agricultural inputs."
"QatarLNG, a subsidiary of Qatar Energy, said on Monday that it would halt production following drone strikes on some of its facilities. This effectively took nearly a fifth of the world's natural gas supply offline, causing gas prices in Europe to spike and putting supplies of urea, a popular type of nitrogen fertilizer, particularly at risk."
"Qatar was the second-largest exporter of urea in 2024. Iran was the third-largest; it's also a key exporter of ammonia, another type of nitrogen fertilizer. Prices on urea sold in the US out of New Orleans were up nearly 15 percent on Monday compared to prices last week."
Middle East tensions have disrupted global fertilizer supplies at a critical time for American farmers. The conflict has caused Qatar to halt natural gas production, which is essential for producing nitrogen fertilizers like urea and ammonia. Qatar was the world's second-largest urea exporter in 2024, and Iran ranks third in urea exports while being a major ammonia supplier. The shutdown has caused urea prices in the US to spike nearly 15 percent. The global fertilizer market depends on three macronutrients—phosphates, nitrogen, and potash—produced through different methods across various countries. The Strait of Hormuz blockage further prevents regional nitrogen product exports, compounding supply chain disruptions during the crucial spring planting season.
#fertilizer-supply-chain #middle-east-conflict #nitrogen-fertilizers #agricultural-impact #commodity-prices
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