Iran's blockade of the Strait of Hormuz has triggered a severe disruption in global fertilizer markets, threatening agricultural productivity worldwide. The strategic waterway, through which approximately 30% of the world's fertilizer exports pass, has seen shipping volumes plummet by nearly 80% following recent military escalations between Iran, the United States, and Israel.
Middle Eastern nations—including Iran, Qatar, Saudi Arabia, the United Arab Emirates, and Bahrain—collectively account for 23% of global ammonia trade, 34% of urea trade, and 18% of ammoniated phosphate trade. Iran and Qatar alone export 16 million tons of fertilizer products annually through the Strait of Hormuz.
"Any prolonged disruption to shipping in the Strait of Hormuz would quickly ripple through global fertilizer markets," warned the International Fertilizer Association (IFA). "Smallholder farms in Sub-Saharan Africa and South Asia are particularly vulnerable, as fertilizer availability and affordability directly influence crop yields and food production."
The immediate impact has been dramatic, with urea prices surging beyond $610 per ton. This crisis compounds existing pressures on fertilizer markets, which were already strained by pandemic-related disruptions, the Ukraine conflict, and China's export restrictions.
In response to the escalating situation, Philippine Agriculture Secretary Francisco Tiu Laurel Jr. has initiated diplomatic efforts to secure fertilizer supplies. He recently met with Chinese Ambassador Jing Quan and plans to engage with India, Russia, and Belarus to ensure uninterrupted imports.
"We need to make sure that we have a supply of fertilizers moving forward," Tiu Laurel stated, noting that while the Philippines has purchased about 84% of its annual fertilizer requirements, delivery uncertainties remain.
The Philippine government is pursuing multiple strategies to address both immediate and long-term fertilizer security. These include following up on agreements with Chinese producers to lower prices and exploring domestic production of biofertilizers through institutions like the University of the Philippines Los Baños.
President Ferdinand Marcos Jr. emphasized the potential of biofertilizers during a recent briefing, stating, "The government will be teaching farmers how to use biofertilizers. The Agriculture department has conducted trials with promising results."
Beyond securing supplies, comprehensive approaches recommended by agricultural experts include improving inventory monitoring, reducing transportation costs, implementing balanced fertilization strategies, and promoting alternatives to chemical fertilizers.
The IFA stressed that "during uncertain times, it is critical that policymakers recognize fertilizers as a strategic component of global food systems and work to keep key agriculture supply chains functioning smoothly."