The European Union plans to stockpile fertilizers to stabilize food prices: or implement joint procurement and establish a minimum stock mechanism.

As the Middle East conflict intensifies agricultural pressure and potentially raises European food prices, the EU is studying reserve fertilizer supply and enhancing Europe's domestic production capacity. On Tuesday (May 19), the European Commission announced on its official website that it will evaluate some solutions to ensure the supply of key fertilizers and inputs, which may include establishing seasonal reserves or minimum stock levels, as well as adopting joint procurement mechanisms when appropriate. On the same day, the European Commission also approved the "Fertilizer Action Plan." The statement said that this plan will directly contribute to ensuring food security, enhancing Europe's strategic autonomy, and achieving high standards in addressing climate change and environmental protection goals. Christophe Hansen, European Commissioner for Agriculture and Food Affairs, said, "Food security begins with fertilizer security. Europe must produce more fertilizer, reduce dependence on external supplies, and guarantee the nutrients needed for agriculture." Before the outbreak of the current Middle East conflict, up to one-third of global fertilizer trade had to pass through the Strait of Hormuz. Currently, the waterway is mostly blocked, posing a risk of disruption to the global food supply chain. Last month, nitrogen fertilizer prices were about 70% higher than the average level in 2024, with natural gas costs accounting for up to 80% of nitrogen fertilizer production costs. EU officials said they are not currently concerned about immediate impacts on food prices, but warned that as farmers gradually deplete their previously purchased fertilizer stocks, the impact may be transmitted to food prices by the end of this year. Fertilizer costs are particularly critical for agricultural farmers, as high-priced fertilizers not only increase the burden on food producers and consumers, but also present a difficult challenge to governments already facing financial constraints. Currently, several Nordic countries have established agricultural emergency reserve systems. Finland has long maintained a "supply security system," including reserves of fertilizers, grains, and fuels; Sweden also announced this year that it will stockpile fertilizers, seeds, and grains. The EU also plans to amend regulations related to the EU's Common Agricultural Policy (CAP) to allow beneficiaries of agricultural subsidies to receive funding in advance to offset additional fertilizer costs. The European Commission also hopes to establish a "leading market" for organic and low-carbon fertilizers produced in Europe, such as requiring the use of low-carbon fertilizers in mixed fertilizer products to stimulate demand. Other technological measures under consideration include allowing the use of nutrient-rich waste "digestate" generated during biogas production processes. Its use is currently restricted due to its high nitrogen content. EU officials hope to control costs before fertilizer prices further drive food inflation, to avoid a repeat of the inflationary impact seen after the 2022 energy crisis. This article is reprinted from "Cailianshe," written by Zhao Hao; translated and edited by GMTEight.