Money and business

The European Union is considering stockpiling fertilizers as the risks of a food crisis mount

The European Union announced that it intends to study establishing strategic stocks of fertilizers and enhancing local production, in light of mounting pressures on the agricultural sector as a result of the war in the Middle East and fears of rising food prices.

The European Commission said during a press conference in Brussels that it will evaluate “readiness options for basic fertilizers,” including requiring member states to maintain seasonal stocks or a minimum reserve, in addition to examining the possibility of joint purchase of fertilizers and their components.

Christoph Hansen, Commissioner for Agriculture, emphasized that food security begins with fertilizer security, and Europe must produce more and depend less on abroad.

Global supply chains have been under increasing pressure, as about a third of global fertilizer trade passed through the Strait of Hormuz before the outbreak of war, making it vulnerable to any geopolitical disturbances.

Within the framework of the proposed measures, Brussels is also seeking to amend the Common Agricultural Policy to allow advance financial payments to farmers to compensate for rising costs, in addition to supporting demand for low-carbon and organic fertilizers produced within Europe.

The Commission is also examining technical measures, such as expanding the use of “digestate” – waste from biogas production – as a nutrient-rich source, despite current restrictions due to its high nitrogen content.

The European Union is trying to contain the repercussions of rising prices before they move into widespread food inflation, similar to what happened after the energy crisis in 2022, at a time when discussions continue about the Union’s budget and future agricultural policies.

Related Articles

Back to top button