Damage to infrastructure in the Gulf is affecting fertiliser availability and pricing, with impacts on Israel's agricultural sector and production costs.
Fertiliser prices in Israel have increased by 180%, linked to disruptions in global supply. The United Arab Emirates accounts for around 30% of global consumption of potassium nitrate and phosphorus fertilisers, and damage to production facilities has affected availability. Fertilisers represent about 10% of agricultural production costs.
At the same time, packaging costs have risen due to higher oil prices. Packaging manufacturers in Israel have announced price increases of up to 35%. These costs apply to both consumer packaging and agricultural inputs, including greenhouse plastic and irrigation systems.
Supply chain conditions are also affecting imports and logistics. Danny Siso, chairman of SHEFFA by Deshen Hatzafon, said, "There is enormous complexity in imports and in maritime shipping, which has become more expensive. In terms of inventory, we are stocked for the coming month, but if we fail to bring in additional shipments, a shortage could develop as early as May."
According to Golan Argaman, CEO of Deshen Hatzafon, supply conditions are influenced by infrastructure damage in the Gulf region. "Infrastructure in the Gulf region has been damaged, and it will take time to rebuild. This is the first time since World War II that factories have been hit on this scale. It is a dramatic event, occurring just as Israel enters peak planting and fertilization season between April and October," he said.
Global fertiliser prices have increased by up to 300%, while increases in Israel have been lower so far. Israel has sourced alternative supplies from Eastern Europe, Egypt, and the Balkans, and some fertilisers are produced locally from domestic raw materials. Other components remain dependent on imports.
Energy markets are also affected. Fatih Birol, head of the International Energy Agency, said, "The situation is very serious," adding that it will take time to return to previous conditions. He noted that "As of now, we are losing 11 million barrels per day — more than the two largest oil crises combined," and that "The crisis is also affecting the natural gas market on an unprecedented scale."
Oil prices remain volatile. Following recent statements from the United States, Brent crude traded around US$97 per barrel and WTI around US$86 per barrel.
Source: ynet Global
