The price of produce is expected to substantially rise (Image: Getty)
Fertiliser costs are surging amid disruption to global energy markets, raising fresh concerns about food prices as farmers warn the impact could soon reach consumers.
The conflict in the Middle East has driven up the price of key agricultural inputs, particularly synthetic fertiliser, which is essential for modern food production. Industry estimates suggest up to half of global crop yields depend on fertilisers derived from ammonia.
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Farmers are already feeling the strain (Image: Getty)
Fertiliser costs are surging amid disruption to global energy markets, raising fresh concerns about food prices as farmers warn the impact could soon reach consumers, according to a report by Sky News.
According to reporting by Sky News, the conflict in the Middle East has driven up the price of key agricultural inputs, particularly synthetic fertiliser, which is essential for modern food production. Industry estimates suggest up to half of global crop yields depend on fertilisers derived from ammonia.
Production of these fertilisers is closely tied to natural gas, which is used in the Haber-Bosch process to create ammonia from hydrogen and nitrogen. As gas prices rise, so too does the cost of fertiliser. Disruption to shipping through the Strait of Hormuz, a critical route for both energy and fertiliser exports, has intensified the pressure on supply.
Wholesale fertiliser prices have risen sharply in recent months, with urea climbing from roughly $300 (£240) per tonne at the start of the year to close to $700 (£560) by late March. Analysts warn this leaves farmers facing higher production costs at the start of the growing season, particularly across Europe and Asia.
The UK is especially exposed due to declining domestic production. High industrial energy costs have made local fertiliser manufacturing less competitive, leaving the country reliant on imports. Supplies are now being sourced from further afield, increasing costs and logistical challenges.
Farmers are already feeling the strain. Higher fertiliser prices mean many must either absorb the additional cost or reduce usage, which can significantly cut yields. Lower yields, in turn, risk tightening food supply and pushing prices higher.
The impact is not limited to arable farming. Livestock producers rely on fertilised pasture and crops for animal feed, while horticulture faces a dual squeeze from rising fertiliser and energy costs. Glasshouse growers, in particular, depend heavily on gas to heat crops such as tomatoes and peppers, making them vulnerable to price spikes.
Economists have warned that input shocks of this kind tend to feed through to consumers with a delay, suggesting food inflation could rise later this year. A similar pattern followed the energy crisis triggered by the war in Ukraine, when higher fertiliser and fuel costs contributed to double-digit food inflation in the UK.
With global supply chains under pressure and energy markets volatile, industry figures say the situation could worsen if disruptions persist. The combination of higher input costs and reduced production risks creating further strain on food systems already grappling with inflation and climate-related challenges.
