The European Commission intends to create a strategic reserve of fertilizers and take measures to ensure its continuous availability against the backdrop of supply chain disruptions due to shipping problems in the Strait of Hormuz. According to the Corriere della Sera newspaper, new forms of strategic storage of fertilizers and joint procurement at European level are being evaluated, similar to what was done during the previous energy crisis.
It is noted that fertilizers, on which agricultural production depends, have become a strategic resource. “The prices of nitrogen fertilizers, the production of which is largely dependent on gas, have risen significantly above last year's average in recent weeks. Brussels is mainly concerned about the delayed effect: not so much an immediate rise in food prices as a new wave of inflation in the coming months as producers use up the reserves bought before the military escalation in the Middle East“, the newspaper writes.
The EC is concerned that the sharp rise in energy prices and the disruption of trade routes could directly affect food prices. Along with oil and gas, a significant part of the fertilizers destined for the world's agriculture pass through the Strait of Hormuz. “Behind the technical discussions in Brussels, however, lies something deeper: they have realized the final collapse of the idea that global supply chains are always accessible, efficient and politically neutral. This logic has previously reduced semiconductors, batteries and natural gas to the status of national security issues, in particular that excessive dependence on external sources poses a geopolitical risk“, the publication concludes.