Rome [Itlay], June 21: The Food and Agriculture Organization (FAO) reported on Thursday that global fertiliser trade contracted by 30 percent during the first four months of 2026, driven primarily by supply shocks stemming from the conflict in the Middle East.
In its latest market assessment, the UN agency projected a slow and uneven recovery for the sector despite the engineered reopening of the Strait of Hormuz.
Between January and April this year, aggregate trade volume fell to 41 million tons, down sharply from 58 million tons during the corresponding period in 2025. The decline was exacerbated as farmers structurally deferred procurement in response to surging input costs and compressed grain margins.
The FAO noted that major production hubs, including China and Turkey, enacted strict domestic export restrictions, further squeezing global trade liquidity.
Reflecting the drop in volume, the total value of global fertilizer trade plummeted 18 percent year-on-year to $18 billion during the four-month period. The contraction follows a broader deceleration in 2025, when global fertilizer consumption slowed to 209 million tons due to weaker commodity price indices, localized adverse weather anomalies, and high global interest rates.
While localized seasonal demand adjustments have since prompted a marginal easing of spot prices, the FAO emphasized that profound vulnerabilities persist ahead of the 2026-2027 agricultural cycle.
The organisation warned that stalled procurement by major buyers, particularly across Europe and North America, could disrupt forthcoming crop cycles and depress baseline yields.
Source: Qatar Tribune
