Farmers in Poland are beginning to feel the pressure as the spillover effects of the U.S.-Israeli war on Iran and the disruption to shipping along the Strait of Hormuz drive up oil and transportation costs and sharply raise fertilizer prices.
Since the conflict erupted in late February, much of the economic pain has come through the weeks of uncertainty along the Strait of Hormuz, a vital chokepoint through which a considerable share of the world's oil, liquefied natural gas, and fertilizers are transported.
The crisis is starting to put strain on Polish agricultural workers such as Maciej Wroczyk, who said fertilizer costs have moved in tandem with energy prices, substantially increasing his operating expenses. He noted that while input costs are escalating, market prices for crops, such as wheat, have not provided comparable support, leaving him stuck in a "high-investment, low-return" situation.
Wroczyk said that fertilizer prices have doubled in some cases, while the soaring costs of the fuel needed to power his farm vehicles and machinery is also taking its toll.
"It's a lot more than before the war. I have to transport it so I have to use diesel and spread it, so I have to use machines. So that's a cost. That's one problem for this season. The prices of diesel. They are increasing the costs of production," he said.
Local industry leaders further explained how the impact of the conflict in the Middle East has been particularly pronounced in the fertilizer sector.
"The impact of the Iran war has led to a sharp rise in fertilizer prices. The biggest increase is in nitrogen fertilizer, as it is the most commonly used fertilizer, and it has the largest sales volume," said Thomas Helechi, a fertilizer factory owner.
Faced with multiple challenges, more farmers like Wroczyk are being forced to adjust their farming practices, and are now relying more heavily on organic fertilizers in a bid to reduce their expenses.
As regional tensions persist and the future outlook remains uncertain, Wroczyk said he has no choice but to continue to grapple with these high input costs and challenging market conditions, as the entire agriculture sector hopes for a return to normality as soon as possible.
"So now I'm using a lot more of natural fertilizer like chicken manure. It helps me to save money. I don't have [any] expectations because the situation of the world is so difficult, it's hard to say what it will be in the next season," he said.
Polish farmers face soaring operating costs as impact of Iran war hits agriculture sector
