As global tensions rise, DA must push hard biofertilizers

Escalating conflict between Iran and Israel– highlighted by the recent bombing of three Iranian nuclear facilities– would certainly bring supply imbalances for fertilizers, chemicals and other petrochemical products that would have far reaching effects on industries and agriculture. 

An analysis done by SUR+ International, a global leader in trading excess chemical inventory and specializing in recycling and repurposing of surplus chemicals, said the conflict has created a perfect storm of supply chain disruptions, with the Strait of Hormuz– through which a third of global oil and 20% of LNG (liquefied natural gas) trade passes– becoming a critical choke point for chemical commerce. 

As maritime insurance costs double and freight rate surge by 25 to 30%, the effects are being felt across fertilizer markets, petrochem supply chains and specialty chemical sectors worldwide.

This analysis focuses on ten chemicals that represent the most significant trade vulnerabilities: methanol, ethylene, urea, ammonia, sulfur, polyethylene, polypropylene, phosphates, potash, and bromine. Together, these chemicals form the backbone of global agricultural, industrial, and manufacturing supply chains, making their disruption a matter of international economic security.

The current crisis began on June 13, 2025, when Israel launched “Operation Rising Lion,” targeting Iranian nuclear facilities at Natanz, Fordow, and Isfahan, along with critical energy infrastructure. 

Iran’s retaliatory strikes have escalated tensions to levels not seen since the 1980s, creating unprecedented uncertainty in chemical markets that were already grappling with structural challenges and trade tensions.

The closure of the Strait of Hormuz, a narrow waterway just 21 miles wide at its narrowest point, has become a global concern as this chokepoint is where not only oil and gas but also the chemical building blocks that support agriculture, manufacturing and industrial processes worldwide flow. Any disruption to this trade route threatens to cascade through global supply chains with devastating economic consequences.

Chemical markets, already facing headwinds from overcapacity in certain sectors and shifting trade patterns, now confront a new reality where geopolitical risk has become a primary pricing factor. 

Of particular interest to the country’s farming sector is urea, the world’s most widely used nitrogen fertilizer which represents one of the most critical chemical vulnerabilities in the current Middle East crisis. With global food security increasingly dependent on chemical fertilizers, any disruption to urea supply chains carries implications that extend far beyond chemical markets into agricultural production and food prices worldwide.

The Middle East’s role in global urea production is substantial, with Iran alone producing 8 million metric tons annually and the broader region accounting for approximately 25% of global urea exports. Iranian urea production is concentrated in several major complexes, including the Razi Petrochemical Complex and the Shiraz Petrochemical Complex, which leverage the country’s abundant natural gas resources to produce urea at highly competitive costs.

The strategic importance of urea in global agriculture cannot be overstated. As a nitrogen fertilizer containing 46% nitrogen content, urea provides essential nutrients for crop growth and is particularly critical for major food crops including wheat, rice, corn, and soybeans. The timing of the current crisis, coinciding with key planting seasons in the Northern Hemisphere, amplifies the potential impact on global food production.

The conflict’s impact on urea markets extends beyond immediate supply disruptions. The uncertainty surrounding Iranian production has led to strategic stockpiling by major importing countries, creating additional demand pressure in an already tight market. Brazil, another major urea importer, has reportedly increased its strategic fertilizer reserves and accelerated procurement for the upcoming planting season.

My take

Given the complexity and fragility of the situation in the MIddle East, regardless of a ceasefire that has been forged, it would be prudent for the Philippines to adopt a strategy that would fill the inevitable gap in the fertilizer market by pushing harder the commercial use of biofertilizer, organic fertilizer and other soil enrichments so enhance productivity and growth of the sector.

Unquestionably, fertilizers and biofertilizers play a significant role in our food security, particularly if production inputs were to be sourced locally, which we have in abundance which one local company– the AgriSpecialist Inc. in Laguna– can supply

We should be more inward looking and source our materials locally so that we can save on our precious dollar reserves, not worry about complications in the supply chain brought about by geopolitical tensions and other market disruptions.This way, we not only ensure our food security, but we create jobs that have been eluding us because of our super dependence on everything imported.