"Fertiliser prices were "already quite expensive" before the conflict, but had since climbed by between 50 and 70 per cent since hostilities began in late February. The trigger, he said, was the effective closure of the Strait of Hormuz, the narrow shipping artery through which a substantial share of the world's fertiliser and the liquefied natural gas needed to make it must pass."
"Farmers are not buying that fertiliser, they're sitting on their hands and hoping things will improve, which they probably won't. The likely response will be a swing from winter cropping towards spring cropping, giving growers a little more breathing room, but at the cost of yield, planning certainty and, ultimately, the price on the supermarket shelf."
British farmers are experiencing significant input cost increases of up to 70 percent, with fertilizer prices rising 50-70 percent since late February due to the Iran conflict and closure of the Strait of Hormuz, a critical shipping route for fertilizer and liquefied natural gas. While current growing seasons remain largely insulated as most fertilizer was purchased before price escalation, future planting cycles face severe constraints. Farmers are delaying fertilizer purchases, hoping for price improvements unlikely to materialize. This will likely shift production from winter to spring cropping, reducing yields and planning certainty while increasing supermarket prices. Grosvenor Group, a major farming operation, is better positioned to manage these challenges than smaller agricultural enterprises.
#fertilizer-crisis #agricultural-costs #iran-conflict-impact #food-price-inflation #supply-chain-disruption
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