The European Commission will assess preparedness options for key fertilizers, including mandatory stockpiles and joint procurement, as the Middle East conflict threatens to disrupt supply chains. Commissioner for agriculture Christophe Hansen emphasized that "food security starts with fertiliser security," highlighting Europe's vulnerability to supply shocks.

Before the Iran war, up to a third of globally traded fertilizers passed through the Strait of Hormuz, creating a critical bottleneck. Nitrogen-based fertilizer prices now sit roughly 70 per cent above their 2024 average, with gas comprising up to 80 per cent of production costs. Officials warn that rising input costs could filter through to food prices by year-end as existing stocks deplete.

Beyond stockpiling, Brussels plans to amend the Common Agricultural Policy to provide advance payments compensating farmers for extra fertilizer expenses. The Commission also aims to create lead markets for organic and low-carbon fertilizers produced in Europe, potentially requiring their use in blended products.

Environmental regulations including the EU's emission trading system will still apply to fertilizers, despite industry calls for relief. The package targets fertilizer-driven food inflation that could strain public finances and consumer wallets across the bloc.