Ethiopia Says Fertiliser Prices Double as Port Delays Drive Costs Higher

Ethiopia’s Ministry of Agriculture has raised serious concerns as fertiliser prices have more than doubled in just weeks, driven by ongoing Middle East conflict centred on Iran and severe port delays. Urea, previously offered at around 430 US dollars per tonne, is now quoted above 870 US dollars per tonne by the same international suppliers. Agriculture Minister Addisu Arega warned that these sharp increases are coming at a critical time ahead of the planting season.

The price surge is directly linked to escalating tensions involving Iran, Israel, and the United States, which have disrupted shipping through the vital Strait of Hormuz. Freight and insurance costs have skyrocketed as Gulf shipping lanes face repeated disruptions. Ethiopia, heavily dependent on imported fertiliser, is now feeling the full impact on its agricultural supply chain.

Speaking at a forum in Adama on April 4, 2026, Minister Arega stated that producers who once offered competitive rates are now quoting more than double the price. The ministry warned that sustained pressure on global supply chains could seriously affect agricultural production and food security if the situation continues unchecked.

Domestic bottlenecks are compounding the problem, with imported fertiliser failing to reach farmers efficiently after arriving at central warehouses and unions. Trucks are sitting idle for five to ten days near storage facilities, slowing inland distribution. These delays have extended vessel turnaround times at ports and driven up demurrage costs significantly.

Ethiopia currently pays 23,000 US dollars per day for each vessel held beyond its allocated time. With six to seven vessels often waiting simultaneously, the cumulative daily cost can equal the value of an entire additional fertiliser shipment. Officials highlighted gaps in regional coordination and limited urgency in clearing stocks as key factors behind the slowdown.

The combined effect of rising global prices and logistical inefficiencies risks pushing up costs for farmers and tightening supply during the most important agricultural period of the year. The ministry urged faster turnaround of fertiliser transport and stronger coordination across regions to ease the bottlenecks immediately.

Minister Arega also called for increased use of organic fertiliser, including compost, as a practical way to reduce dependence on expensive imports. Failure to improve distribution could result in daily losses of between 100,000 and 110,000 quintals of fertiliser due to stalled transport, the ministry warned. Farmers and agribusinesses are now bracing for higher input costs that could affect the entire planting season.

Businesses involved in agriculture, logistics, and fertiliser distribution are closely monitoring the situation as the dual pressures of global conflict and local inefficiencies threaten food production targets. The government is expected to take urgent steps to streamline port operations and support farmers facing these unprecedented cost increases.

Overall, the sharp rise in fertiliser prices and persistent port delays highlight the vulnerability of Ethiopia’s agricultural sector to international disruptions. Stakeholders are calling for swift action to protect the upcoming planting season and safeguard national food security.

Mintesinot Nigussie