Middle East crisis boosts China's agrochemical dominance
China produces about a third of global fertiliser and 70% of raw materials for chemical pesticides. As the US-Israeli war on Iran disrupts Strait of Hormuz shipments—through which one-third of seaborne fertiliser trade passed before late February—China's control over upstream agricultural inputs grows. Chinese farmers face no supply issues; an agriculture ministry official reported ample fertiliser for spring ploughing at prices far below international levels. Analysts at Sublime China Information warn that China's export restrictions combined with global shortages in urea and phosphate fertilisers are pushing prices higher and threatening food security. IBISWorld data confirms China's 70% share of pesticide raw material production capacity.
Key facts
- China accounts for about a third of global fertiliser production.
- China accounts for 70% of raw materials for chemical pesticides.
- Before late February, one-third of seaborne fertiliser trade passed through the Strait of Hormuz.
- US and Israel began military strikes on Iran at the end of February.
- Chinese agriculture ministry official said domestic fertiliser prices are far lower than international prices.
- Analysts at Sublime China Information said China's export restrictions and global shortages are pushing prices higher.
- IBISWorld reports China has 70% of world production capacity for pesticide raw materials.
- The Middle East conflict spreads uncertainty among farmers worldwide.
Entities
Institutions
- Ministry of Agriculture and Rural Affairs
- IBISWorld
- Sublime China Information (SCI)
- United Nations
Locations
- China
- Iran
- United States
- Israel
- Strait of Hormuz