The fertilizer industry is welcoming the reopening of the Strait of Hormuz following a new agreement between the United States and Iran, calling it a positive development for farmers and global agricultural supply chains. The Fertilizer Institute says the waterway is a critical route for fertilizer and energy shipments. Roughly 40 percent of the world’s urea fertilizer and about half of global sulfur supplies move through the strait each year.
“Farmers in the U.S. and around the world need this vital shipping lane open and operational,” said Corey Rosenbusch, president and CEO of the Fertilizer Institute. Despite the reopening, industry leaders warn supply chains won’t return to normal overnight. Tankers carrying oil are expected to receive priority, and damage assessments continue at production facilities throughout the region.
TFI economist Veronica Nigh said fertilizer markets may take months to fully recover from the disruption.
NAFB news service
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