Fertiliser shortage raises concerns among agricultural producers

Rising Fertiliser Costs Spark Fears Over UK Food Prices

The ongoing conflict between the United States and Iran has led to a sharp increase in fertiliser prices, raising concerns that food costs in the UK could soon climb.

Significant hikes in the prices of nitrogen and phosphate fertilisers, which are vital for growing crops, have prompted worries that staples like vegetables and grains may become more expensive for consumers.

Many farmers warn that if fertiliser prices remain elevated, they may be forced to raise the prices of their produce at the farm gate next year just to remain profitable.

Richard Heady, who manages a 700-acre farm in Buckinghamshire, explained that he will need to charge £220 per ton for his grain after the next harvest, compared to the current rate of £170, due to these increased costs.

Heady stated, “Fertiliser prices have risen dramatically, but we can’t do without it. I had to place an order despite the cost, to ensure we can still grow our crops.”

The conflict has resulted in the closure of the Strait of Hormuz, a crucial shipping route for key fertiliser ingredients and a major export channel from the Middle East.

Since the start of the conflict, the price of urea—a common nitrogen fertiliser—has surged by approximately 40 percent, as trade through this vital waterway has come to a halt.

Additionally, several fertiliser plants in the Middle East have shut down because they can no longer obtain essential raw materials.

Food Production Faces New Inflation Pressures

Tom Bradshaw, president of the National Farmers’ Union, warned that the current crisis is likely to drive further increases in food prices.

He commented, “The intensifying conflict in the Middle East is troubling, as any lasting disruptions to global energy markets will inevitably affect the availability and cost of fuel, fertiliser, and energy.”

Bradshaw added, “We are genuinely concerned that this could mark the beginning of a new inflationary period for food production.”

Most farmers who plant spring crops have already secured their fertiliser supplies for the coming year. However, the Agriculture and Horticulture Board cautioned that the real impact may be felt during the 2027 harvest, as current reductions in fertiliser output could lead to shortages in the future.

Sam Carlisle, a crop farmer in Suffolk, highlighted that soaring costs are a major worry for those in agriculture.

Carlisle noted that with both fertiliser and diesel prices on the rise, smaller farms without existing supplies may need to reconsider their business strategies, as their profit margins could be severely affected.

Beer Prices May Also Be Affected

Lord Fuller, chairman of fertiliser importer Brineflow, told Farmers Weekly Magazine, “This period of uncertainty couldn’t have come at a worse time, especially with weather delays and farmers facing financial pressures that force them to delay purchases.”

Brewers are also likely to face higher grain costs as fertiliser prices climb, which could make producing malting barley—essential for brewing beer—more expensive.

Tom Stainer, chief executive of the Campaign for Real Ale, pointed out, “Breweries and pubs have no control over fertiliser prices.”

He warned, “Unfortunately, this could ultimately lead to higher prices for a pint at your local pub.”

Industry estimates suggest that malted barley accounts for around 10 percent of the cost of a pint, though this proportion can be even higher in craft beers, which typically use more malt.