Fertiliser prices surge 35% as Hormuz Strait tensions disrupt ammonia supplies

Disruptions in the Hormuz Strait near Iran have driven up fertiliser prices by 35% at Danish agricultural supplier Mollerup Mølle, reports DR. The price hike comes as farmers prepare to spread fertiliser on spring fields, with ammonia—a key ingredient in nitrogen-based fertiliser—facing supply uncertainty due to the regional conflict.

Jakob Pedersen, co-owner of Mollerup Mølle on the island of Mors, explained that the current price spike stems from instability in ammonia supply chains. “What’s driving fertiliser prices right now is the uncertainty around ammonia deliveries,” he said. While most farmers have already secured fertiliser for spring planting, Pedersen warned that future purchases could become problematic. “Normally, we can buy what we need, but producers in Germany and Poland are struggling to quote prices. The product simply isn’t as available as it was six months ago.”

The surge echoes a similar crisis in 2022, when Russia’s invasion of Ukraine caused fertiliser prices to triple. At the time, farmers offset costs as grain prices later rose, noted Leif Gravesen, chairman of Denmark’s largest farming association, Fjordland. “Back then, we had shortages and high costs, but crop prices eventually climbed. That might happen again—but there’s a delay. We’ll have to cover the expenses first and hope prices follow,” he said.

However, grain prices are unlikely to rise significantly this time, according to independent agricultural advisory Agrocura. “We don’t import grain from Iran, and global supplies are strong after last year’s record harvests,” said customer director Henrik Andresen. “That’s kept crop prices low worldwide.”

The cost increases extend beyond fertiliser, with fuel and plastic also adding to the financial strain on Danish farmers.