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    08-Apr-2026

Energy shocks drive fertiliser costs higher, as Jordan seen as stabilising supplier

 

AFP

 

AMMAN — Rising global energy prices and supply disruptions are driving up fertiliser costs, with direct implications for farmers in Jordan and food prices more broadly.
 
While natural gas is widely associated with heating and electricity, it is also a critical input in the production of fertilisers used to grow crops.
 
When gas supplies are disrupted, whether due to conflict, geopolitical tensions, or market volatility, fertiliser production becomes significantly more expensive.
 
A supply chain expert, Linda Al Masri told The Jordan Times that the issue is compounded by the concentration of global fertiliser supply.
 
"More than 50 countries rely heavily on exports from Abu Dhabi and Qatar for key inputs such as nitrogen, urea and ammonia," the expert said. "Any disruption, whether from conflict, energy shocks or political decisions, can ripple across dozens of nations at once."
 
In some cases, high gas prices have forced fertiliser plants to scale back or halt production altogether, tightening global supply.
 
For Jordanian farmers, the impact is already being felt through higher input costs. Many are adjusting by reducing fertiliser use, a decision that can have consequences for agricultural output.
 
"Lower application rates often translate into smaller harvests," Al Masri noted. "When yields decline, food supply tightens, and that ultimately pushes prices higher for consumers."
 
Stable foods, including bread, rice and vegetables, are particularly vulnerable to such fluctuations, raising concerns over affordability and household budgets.
 
Fertilisers impact on farmers
 
CEO of Arab Potash Company, Maan Nsour, said farmers typically adapt to prolonged periods of high fertiliser prices by becoming more selective and efficient in their usage.
 
"In periods of sustained price pressure, farmers focus on improving efficiency through soil testing, better timing and precision application," the CEO said.
 
He added that farmers may reduce fertiliser use in lower-margin crops while maintaining full application for higher-value produce, as well as shifting toward crops with stronger market returns. Non-essential applications are also often postponed where short-term yield impacts are expected to be limited.
 
However, these adjustments, when replicated across regions, can have broader implications for global food systems.
 
"Reduced or delayed fertiliser use can lead to lower crop yields and quality, particularly for crops that are highly responsive to nutrient application," Nsour said. "This contributes to tighter global food supplies and increased price volatility."
 
Import-dependent countries and small-scale farmers are especially exposed to rising input costs, he added, warning that the risks extend beyond pricing alone.
 
"Availability and timing are equally critical," the CEO said. "Even when fertilisers are accessible, delays beyond key planting or application windows can negatively affect yields."
 
Jordan is part of solution
 
Despite these challenges, Jordan is increasingly seen as part of the solution.
 
The CEO noted that Arab Potash Company said that Jordan can continue to play a stabilising role in global fertiliser markets, particularly as energy and supply routes in parts of the Gulf remain under pressure.
 
"During periods of disruption, global markets place high value on consistent delivery," he said. "Our focus on steady export flows and adherence to contractual commitments helps reduce uncertainty for customers and supports more orderly market conditions."
 
He stressed the importance of logistics resilience, pointing to Aqaba as a key export gateway, alongside the company’s ability to supply from storage facilities in Northwest Europe and to shift between bulk, container and land transport options.
 
The expansion of land-based deliveries to neighbouring Gulf markets also provides additional flexibility, helping ease pressure on congested maritime routes, he added.
 
"Continued vessel loadings and forward shipping schedules demonstrate our ability to operate reliably even in a high-risk environment," the CEO said, noting that such operational consistency reinforces confidence among customers and trading partners.
 
Al Masri said the situation underscores the growing interconnection between energy markets, geopolitics and food security, while also highlighting the role that stable producers can play in mitigating volatility.
 
"In today’s world, food security is no longer just about farming," the supply chain expert said. "It is about energy, politics and global supply chains."
 
However, Nsour said that maintaining dependable supply flows, and leveraging Jordan’s logistical and production strengths, could help cushion some of the global shocks.
 
As uncertainties persist, ensuring stability in fertiliser markets may prove critical not only for farmers, but for food security worldwide.
 

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