European Union agriculture ministers convened in Brussels to address fertiliser availability, a critical concern exacerbated by disruptions in the Strait of Hormuz linked to the conflict with Iran. The European Commission is advancing a new Fertiliser Action Plan designed to support farmers grappling with significantly increased fertiliser costs. This initiative aims to bolster agricultural output and diminish Europe’s reliance on food imports.

The proposed plan includes provisions for potential fertiliser stockpiling, emergency aid for farmers, and strategies to increase imports from nations outside of Russia and Belarus, countries involved in the ongoing conflict with Ukraine. These measures come in response to disruptions in the Strait of Hormuz, a crucial shipping lane that typically handles approximately one-third of the world's seaborne fertiliser trade. Concerns are mounting that escalating fuel and fertiliser prices could further strain farmers already burdened by high operational expenses.

While the European Union is not as directly impacted by fertiliser shortages as some other global regions, the supply chain disruptions have highlighted internal disagreements within the bloc regarding the best approaches to safeguarding food supplies and protecting farmers from escalating costs. The plan aims to mitigate these challenges by diversifying import sources and potentially building strategic reserves.

The implications of these disruptions extend beyond immediate agricultural concerns, touching upon broader issues of food security. While the direct impact on European fertiliser imports from the Middle East is minimal—the region accounts for only about 3 percent of the EU’s ammonia imports and 1-2 percent of nitrogen fertiliser imports—the bloc is still affected by elevated global prices. This is largely due to European nitrogen fertiliser production relying heavily on natural gas, the price of which has risen due to the Strait of Hormuz disruptions.

Data from the European Commission indicates that nitrogen fertiliser prices in Europe are currently about 70 percent higher than their average in 2024. This vulnerability was starkly demonstrated following Russia's full-scale invasion of Ukraine in 2022, when soaring gas prices led several European fertiliser manufacturers to reduce production or temporarily cease operations. The EU's dependence on imported gas for fertiliser production underscores the interconnectedness of global energy markets and food supply chains.

European Union data reveals that the bloc imports substantial quantities of fertiliser annually, including two million tonnes of ammonia, 5.8 million tonnes of urea, and 6.7 million tonnes of nitrogen fertilisers and mixtures in 2024. Although the EU also produces its own nitrogen fertiliser, this process is heavily dependent on the price and availability of imported natural gas.

The current situation has amplified fears about global food security, particularly for nations in Africa and South Asia that have a greater dependence on supplies originating from the Persian Gulf. The European Union's efforts to create fertiliser stockpiles and secure alternative import routes reflect a strategic pivot towards greater self-sufficiency and resilience in its agricultural sector.

Officials hope the Fertiliser Action Plan will not only stabilize prices for farmers but also contribute to increased agricultural production across the bloc, thereby reducing the need for imported food products and strengthening the EU's overall food supply chain resilience in the face of geopolitical uncertainties.