On the 25th of March, Intercéréales held its 17th Export Morning in Paris, focusing on the resilience of the cereals sector in the face of geopolitical shocks. The recent tensions in the Strait of Hormuz have led to disruptions in the global trade of energy resources and fertilizers.
The war in the Middle East highlights the dependence of French farms on the global fertilizer market. European countries, including France, largely import raw materials for fertilizers, making them vulnerable to supply chain disruptions.
These geopolitical tensions have also led to price hikes in all segments, raising concerns about the accessibility of raw materials. While the 2026 harvest seems secure due to forward market contracts, the situation for the 2027 harvest is uncertain.
In addition to geopolitical challenges, European regulations like the Carbon Border Adjustment Mechanism (CBAM) are adding pressure to the industry. Implementing CBAM on fertilizers imported into the EU aims to reduce carbon leakage but poses challenges for importers and farmers.
Farmers and industry experts are calling for concrete measures to address these challenges and secure the future of the cereals sector. Diplomatic relations, regulatory stability, agronomic efficiency, and local production are key focus areas to ensure sustainable access to fertilizers and stabilize the market.
Efforts to diversify sourcing, enhance agronomic practices, and explore opportunities for domestic production are essential to mitigate the impact of global disruptions. However, the timeline for such shifts poses challenges, requiring strategic planning and support from policymakers.
