South African grain farmers confront fertiliser price spikes after strait closure

Fertiliser prices in South Africa surged sharply after Iranian-linked forces closed the Strait of Hormuz in late February 2026. Grain farmers now face costs up to 59 percent higher for key inputs like urea, adding pressure to production expenses that already include 30 to 50 percent for fertiliser. Some producers are exploring regenerative practices to reduce reliance on imports.

The closure disrupted global supplies of urea, ammonia, phosphates and sulfur, which pass through the strait in large volumes. Local import prices rose quickly, with urea climbing 59 percent in one month, monoammonium phosphate increasing 26 percent and potassium chloride rising 11 percent, according to Grain SA monitoring.

South Africa imports more than 80 percent of its roughly two million tonnes of annual fertiliser needs from countries including Russia, Saudi Arabia and China. Experts note that fertiliser makes up a major share of grain farmers' variable costs, while fuel prices above 100 dollars per barrel have added further strain during planting and harvest seasons.

Some farmers are turning to soil health methods to cut synthetic inputs. Practitioners report reductions of 50 to 100 percent in chemical fertiliser use through compost and biological programmes, with improved yields in certain orchards and crops. Grain SA officials say such approaches were gaining ground and may accelerate amid the current cost pressures.

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