FAO warns of crop yield losses from delayed fertilizer applications

The closure of the Strait of Hormuz has triggered sharp increases in global fertilizer prices and disrupted trade flows of up to 3 million metric tons per month, threatening agricultural productivity across key importing regions as planting seasons approach, the UN's Food and Agriculture Organization said April 28.

"The crop calendar is central to understanding the urgency of the fertilizer crisis," FAO Director-General Qu Dongyu said during the organization's Council Session in Rome. "Fertilizer applications must align precisely with planting windows that cannot be rescheduled without permanent yield losses."

Rising energy and fertilizer costs are squeezing farmers' profits, potentially lowering future crop yields, Qu said, while also highlighting urea price increases in the US and Brazil.

The FAO has activated a fertilizer access program prioritizing shipments to low-income, landlocked developing countries, alongside real-time supply chain monitoring and analysis of alternative routing corridors for agricultural inputs, it said.

Qu called for a coordinated policy response over the next 90 days, including developing alternative trade routes, enhancing market monitoring, avoiding export restrictions on energy and fertilizers, and providing financial support for farmers. Medium-term measures should focus on diversifying import sources and emergency food aid, while long-term strategies must prioritize sustainable agriculture and renewable energy investments, he said.

The FAO is also coordinating with Gulf Cooperation Council countries on strategic reserves to prevent simultaneous panic-buying that could further tighten supplies.

Platts, part of S&P Global Energy, assessed ammonia in the Middle East at $775/mt FOB April 28, up from $475/mt FOB Feb. 27.