Statement on impact of conflict in Middle East on fertiliser:
Last updated: 11am 10 March 2026
We’re confident we will have the volume of nutrients required to meet our customers’ usual Autumn needs. While we have supply volumes secured over the short-term from other regions, we don’t know what impact this escalation will have on price. We have already seen significant price increases leading into this conflict and given this latest escalation and the market’s reaction we anticipate more. Upcoming shipments are mostly subject to pricing at time of shipment. As a commodity, fertiliser pricing experiences movements similar to the imported oil market.
Significant volumes of nutrient commodities are shipped through the Strait of Hormuz by Qatar, the United Arab Emirates, Saudi Arabia, Bahrain and Iran. Further disruptions to Middle East shipping routes can affect shipping times, freight costs and drive increased demand for nutrients from other regions, noting that Chinese export controls for Urea, NPKs and DAP/MAP remain in place until mid-2026. All of these factors impact price across the sector.
We’re encouraging our customers to work with their Nutrient Specialists to plan ahead. Thinking ahead and creating a plan early will help us make sure we have what they need, when they need it.
The uncertainty caused by the situation in the Middle East highlights how critical local resilience is for New Zealand. In an increasingly uncertain global environment, secure access to fertiliser matters for farmers and for the wider economy. For our Kapuni gas to urea plant we continue to be active in the gas market and we’re becoming more assured about the likelihood of securing longer-term supply. Our priority remains very much on maintaining locally manufactured nutrients as part of the nutrient supply mix and preserving future options.
