Fertilizer price rises 9% to 31% due to Iran-US tensions

Tensions between Iran and the United States are increasing global fertilizer prices. Estimates show price increases between 9% and 31% compared to 2025. This rise is due to problems in Middle East shipping routes and higher energy costs.

This impacts African nations, including Ghana. Sub-Saharan Africa imports over 80% of its fertilizer. Ghana relies on imported urea and other nitrogen fertilizers for crops like maize, rice, and vegetables.

Higher fertilizer costs will affect government subsidies. The government supports farmers with subsidized fertilizer. Increased prices will either raise the subsidy cost or force farmers to pay more. This could lead to farmers using less fertilizer, lowering crop yields.

Lower yields mean less food production. This will make food more expensive. Ghana has seen food price increases before, due to climate change and currency issues.

The current situation is similar to the Russia-Ukraine war effect on global food and fertilizer markets. That conflict caused prices to rise sharply. Supply is also a concern. Production facilities in the Gulf region have faced shutdowns, causing supply shortages.

For Ghana, which does not produce its own fertilizer, this means a risk of delayed shipments during key planting times. By 2026, Ghana could face higher food prices and stronger reliance on imported food. This would affect household buying power.

Experts suggest Ghana needs to make changes in its farming sector. This includes finding different sources for fertilizer and making more fertilizer locally. Promoting farming methods that use less imported fertilizer is also important. These changes take time but will help Ghana's agriculture become stronger against global price swings.