Fertilizer Prices Fuelled by War in Iran

Fertilizer prices have been skyrocketing this year due to trade disruptions and high natural gas costs, affecting farmers worldwide.

Nearly all industries are affected by rising fossil fuel prices since most of our economy relies on these fuels for transportation.

Fertilizer production is heavily reliant on natural gas, which is used as both an energy source and a chemical input in the production of ammonia, a key fertilizer ingredient.

The war in Iran has caused natural-gas prices to spike, leading to high fertilizer prices. The price of urea climbed above $850 per metric ton in April, 80% higher than before the conflict.

Pivot Bio and Switch Bioworks are among companies developing alternative fertilizers using genetically edited microbes that don't rely on natural gas, making them cost-competitive with chemical fertilizers today.