German Fertiliser Makers and Farmers Struggle Amid Iran War Fallout
German fertiliser producers and farmers face severe challenges due to Iran’s Strait of Hormuz closure and rising energy costs. SKW, Germany’s largest urea producer, is at full capacity but struggles with doubled gas prices. Farmers like Gerhard Geywitz see fertiliser costs up 50%, fearing shortages, while industry leaders warn of threats to European food security.
German fertiliser producers and farmers are grappling with the economic fallout from Iran’s closure of the Strait of Hormuz, a vital shipping lane for one-third of global fertilisers. This blockade, coupled with soaring energy costs, threatens global food security, particularly in Africa and South Asia, as warned by the World Trade Organisation.
SKW, Germany’s largest urea producer, located in Wittenberg, is operating at full capacity to mitigate supply shortfalls. The company anticipates a 10-20% revenue increase this year, but CEO Carsten Franzke states they are not “war profiteers,” expecting to only break even due to doubled gas prices since February 28. SKW, which powers 80% of its production with gas, now imports from Norway, the Netherlands, and the US, facing rising global prices.
Farmers like Gerhard Geywitz in Baden-Wuerttemberg are severely impacted, with fertiliser prices up 50% since the war began. Unable to pass these costs to consumers due to stable cereal prices, Geywitz fears a fertiliser shortage next year and is stocking up. The German Fertiliser Producers’ Association (BVDM) highlights that several European plants closed pre-crisis due to costs, warning that dependence on international markets and lack of local production threaten European food security. Industry leaders are calling for a review of the EU’s carbon trading scheme to ease business pressures.