Middle East conflict affects European potato producers

The European potato sector is facing new challenges due to geopolitical tensions in the Middle East, which are provoking an increase in the cost of fertilizers, fuel and logistics. The closure or restriction of traffic through the Strait of Hormuz, through which 20 to 30 percent of global fertilizer exports pass, is creating shortages of key components such as urea, ammonia and phosphates.

This is reported by Mintec.

Analysts note that fertilizer prices in some regions have increased by more than 30 percent precisely in the critical period before spring planting. In addition to logistical problems, the conflict has provoked an increase in the price of natural gas, which is the main raw material for the production of nitrogen fertilizers.

“This literally could not have happened at a worse time of year,” StoneX analyst Josh Linville comments on the situation, pointing to the risks to future potato yields and quality.

Experts also warn that rising energy prices are increasing the cost of storing crops, as ventilation and cooling systems in warehouses require significant electricity consumption. High market volatility is forcing some farmers to reduce potato areas in favor of alternative crops, such as grains or oilseeds, to minimize financial risks.

Tags: fertilizers, potato, war