Rising global fertiliser prices are sending shockwaves through Ethiopia's agricultural sector. Urea has reached 488.3 dollars per ton, while DAP is projected to hit 770.6 dollars in the first quarter of 2025/26, marking over a 40 percent year-on-year increase. Smallholder farmers are feeling the immediate pinch of these costs.
The surge in imported fertiliser prices is hitting Ethiopia's farming community hard, particularly smallholder farmers who form the backbone of the agricultural sector. Global market trends have driven Urea prices to 488.3 dollars per ton, with Diammonium Phosphate (DAP) forecasted to reach 770.6 dollars in the first quarter of the 2025/26 fiscal year—a more than 40 percent increase from the previous year.
For farmers like Badme Fente, a teff producer in Dejen, the rising costs are a direct threat to livelihoods. "Last year’s price was 8,000 Br a quintal, a figure now feared to edge closer to 10,000 Br," he recalled, highlighting the personal toll on crop production.
Ethiopia's economy relies heavily on agriculture, which supports millions and contributes significantly to GDP. These escalating costs could force farmers to cut back on inputs, potentially reducing yields and driving up food prices nationwide. The trend underscores broader challenges in accessing affordable inputs amid global volatility. This report, penned by Surafel Mulugheta for Addis Fortune, was published on December 20, 2025.