Fertilizer Crisis: UK Farmers Hit Hard

0:00On March 30th, farmers across the UK are getting hit hard by skyrocketing fertilizer prices thanks to the Iran War effectively shutting down the straight of Hormuz. This key shipping lane handles up to 30% of the world's supply and since fertilizer relies heavily on natural gas costs have doubled. Urea, a main ingredient, jumped from around $300 a ton at the start of the year to nearly 700 by late March. That spike comes right as Europe and Asia kick off their growing seasons when farmers need it most. The UK makes less than half the fertilizer it uses now with high energy costs killing domestic production. Importers of scrambling, bringing in stuff from places like Trinidad, but new shipments cost way more, forcing prices up across the board. British farmers and growers are feeling the squeeze first hand. One beef farmer in the Cotswolds saw his pasture fertilizer bill climb from 370 pounds a ton to almost 500 delaying.

1:00Delivery until April. He says skipping it means half the yield, but passing costs the buyers ain't easy in a global market. Horticulture growers north of London are an even worse shape, with gas bills up over 90% in the last month to heat their greenhouses. They're locked into old supermarket deals from last fall, so they're deciding whether to keep producing salads and veggies at a loss or shut down. Operatings entirely. As these pressures build, food inflation looks inevitable. Threading yields and security right when stocks are already low from last year's dry. Summer, expect those higher prices to land on supermarket shelves soon, so stock up smart while you can.