Fertilizers: G7 agriculture ministers meet in Paris to address the risk of global shortages

Meeting yesterday in Paris under the French presidency, the G7 agriculture ministers devoted their discussions to an issue that has become strategic for global agriculture: the security of fertilizer supplies. This meeting comes amid significant tensions in fertilizer markets, caused by the conflict in the Middle East and disruptions to maritime traffic in the Strait of Hormuz, a crucial waterway for global fertilizer trade.

While no concrete measures were announced at the conclusion of the meeting, participants expressed their commitment to strengthening cooperation to prevent a crisis that could have a lasting impact on global agricultural production. Ministers discussed, in particular, the difficulties faced by farmers due to soaring fertilizer costs and how to secure supply chains in the coming months.

Prices have risen sharply since the start of the conflict

Since the outbreak of the war in Iran at the end of February, fertilizer markets have been highly volatile. The near-closure of the Strait of Hormuz, through which approximately 30% of the world's traded fertilizers pass, has severely disrupted international trade. As a direct consequence, fertilizer prices have jumped by nearly 50% on average, with increases sometimes reaching 70% for urea, a nitrogen fertilizer widely used in large-scale farming.

While most producers had already secured their purchases for the 2026 season, the consequences could become much more apparent from the end of summer onward, when supplies for winter cereals like wheat and barley begin to be procured. Industry professionals fear that some farmers will reduce their purchases due to high costs, which could affect 2027 crop yields.

Reduce dependence on imported fertilizers

During the discussions, the G7 members agreed on the need to diversify their supply sources and reduce their dependence on fertilizers produced from fossil fuels. Several approaches were discussed, including improving the efficiency of fertilizer use, developing innovative solutions based on agronomic research, and increasing the use of organic fertilizers.

For the European Union, the stakes are particularly high. The continent currently imports nearly 60% of the fertilizers it consumes, making it vulnerable to geopolitical disruptions and fluctuations in global markets. French authorities are, in fact, working on developing a "Fertilizer Plan" aimed at strengthening the country's self-sufficiency and supporting farmers in adopting practices less reliant on chemical inputs.

A major economic and food issue

Beyond the agricultural issue, participants highlighted the economic consequences of a prolonged fertilizer crisis. A sustained rise in production costs could weaken many farms, reduce crop profitability, and ultimately lead to higher food prices for consumers. Ministers therefore stressed the importance of transparent and predictable markets to prevent speculative practices that could exacerbate the situation.

Several international organizations participated in the discussions, including the European Union, the Organisation for Economic Co-operation and Development (OECD), the Food and Agriculture Organization of the United Nations (FAO), and the Agricultural Market Information System (AMIS). Their participation underscores the global nature of an issue that extends far beyond the G7 countries alone.

An environmental challenge as well

Discussions also focused on the environmental impact of fertilizer production and use. According to several studies, fertilizers are responsible for approximately 5% of global greenhouse gas emissions, a level comparable to that of air transport. A significant portion of these emissions comes directly from their application in fields, while the remainder is generated during their manufacture.

In light of this situation, the G7 countries want to encourage the development of more sustainable agricultural practices and accelerate research into alternative solutions. The conclusions of this meeting should now inform discussions at the next G7 summit of heads of state, to be held next week in Évian, where the issue of food sovereignty is expected to be among the main topics addressed.