The closure of the Strait of Ormuz amid the US-Iran conflict has driven a 7.5% rise in global fertilizer prices over the past week, with urea surging 24%. Colombia, reliant on imports for most of these inputs, faces potential effects on its agricultural sector. Experts warn this could increase production costs for crops.
The conflict in the Middle East, worsened by the closure of the Strait of Ormuz, has created volatility in global markets. According to Bloomberg's Green Markets Fertilizer Price Index, fertilizer prices rose 7.5% between February 27 and March 6, 2026. Specifically, urea's price climbed from US$460 to US$570 per ton, a roughly 24% increase, per the US Gulf Nola Urea Granular Spot indicator.
Latin America relies on imports for up to 90% of its agricultural fertilizers. In Colombia, urea accounted for 27.8% of fertilizer imports in 2025, per Dane data. The country imports about 2 million tons annually, representing 12% to 30% of total crop production costs, said Jorge Bedoya, president of the Colombian Farmers' Society (SAC).
The Persian Gulf produces 30% of the world's urea, and 45% of global fertilizer trade passes through Ormuz. César Palacio, manager of Forteagro, noted that conflicts in these areas reduce supply and drive prices up, with estimated urea increases of US$80 to US$120. This could ripple into food prices, animal feed, and other goods.
While Colombia sources urea mainly from Trinidad and Tobago and the United States, the closure impacts the broader economy. Inventories cover 2-3 months, but crops like rice, coffee, corn, and potatoes may suffer if the situation continues. Urea has also risen 62% since December 2025, affected by the Russia-Ukraine conflict as well.
