According to the German Farmers’ Association, Germany is facing a critical fertilizer shortage due to the Iran conflict. Although the organization has not yet encountered a physical supply bottleneck, structural high prices for nitrogen compounds remain, and stocks for the upcoming growing season are dangerously low, stated Farmers’ President Joachim Rukwied to Redaktionsnetzwerk Deutschland.
The Iran conflict is significantly burdening German farmers, with Rukwied noting that many operations are now struggling to survive. The conflict triggered another shock in input prices, occurring simultaneously when producer prices remained very low.
Rukwied warned that the situation in the Gulf has not improved, confirming their fears: relying on hope risks compromising food supply security. He highlighted that the high cost of diesel is massively straining farms and called for short-term relief, including a temporary reduction of the energy tax to the EU minimum and a reduction in the CO2 pricing burden.
As the Gulf conflict persists, there is a risk that gas prices could spike again, potentially leading to a renewed price surge through the natural gas-ammonia supply chain. “We warn against precisely this-the calm in the fertilizer market is deceiving,” Rukwied commented.
Looking toward the long term, the focus must be on increasing Europe’s self-sufficiency in fertilizers. He stressed that symbolic measures, such as temporary customs deferrals, which were quickly rendered ineffective by the ongoing CO2 Border Adjustment Mechanism, are insufficient.
