Stockpiling Driven by Prolonged Middle East Conflict... Fertilizer Sales Surge 45%

Speculative Demand Surges as Farmers Stock Up Amid Price Hike Fears
Ministry Imposes Limits on Fertilizer and Film Sales

Recently, there has been an abnormal surge in the sales of agricultural fertilizers and plastic films, prompting signs of panic buying. This appears to be driven by farmers’ anxiety over potential supply shortages due to the prolonged Middle East war, leading to excess demand.

According to the Ministry of Agriculture, Food and Rural Affairs on May 6, the volume of inorganic fertilizers sold through the National Agricultural Cooperative Federation from January to April 26 of this year increased by 45.4% compared to the same period last year. Inorganic (chemical) fertilizers, which are extracted from minerals or chemically synthesized, provide nutrients to increase crop productivity. Urea is a key raw material, and concerns over supply instability have grown due to factors such as the blockade of the Strait of Hormuz resulting from the Middle East conflict. The dependence on urea fertilizers from the Middle East exceeds 43%.

Currently, 97% of inorganic fertilizers distributed in the market are supplied through the National Agricultural Cooperative Federation. The price of fertilizer remains at 871,000 won per ton, similar to the level before the outbreak of the Middle East war. A Ministry official stated, "After the outbreak of the Middle East war, farmers, concerned about price hikes, began buying additional quantities in advance of future needs, which led to increased sales due to excess demand. Based on on-site inspections, it appears that most farms have already secured sufficient supplies needed for spring farming activities, so farm operations should not be affected. However, some retail outlets have reported temporary inventory shortages due to excess demand."

A similar situation is unfolding with agricultural films (plastic sheets). As of the end of March 2026, sales of mulching film (used for ground covering) through the National Agricultural Cooperative Federation increased by 17.2% year-on-year, while greenhouse film sales rose by 15%. A Ministry official explained, "It is difficult to accurately estimate the price of plastic sheets because there are significant sales through private channels as well as the National Agricultural Cooperative Federation. Most of the products delivered before the Middle East conflict are still being sold without price changes, but in some regions, prices have increased mainly for products supplied after the conflict."

At present, sufficient quantities of fertilizers and agricultural films (plastic sheets) required for spring farming have been secured on site. According to the Ministry, fertilizers can be supplied stably until the end of August 2026, and a substantial portion of the demand for plastic films on farms has been secured through June.

As more farmers rush to secure fertilizers and plastic sheets in advance, the Ministry has started limiting sales through the National Agricultural Cooperative Federation. Although supplies have been secured for spring farming needs, there are concerns that continued excess demand could lead to further supply instability. As a result, the Ministry has instructed local cooperatives to sell only the quantities that farmers currently need. Sales are now limited based on each farm's sales volume from the same month last year. However, if there are legitimate reasons, such as farm expansion or crop changes, farmers may purchase additional quantities after providing an explanation.

This content was produced with the assistance of AI translation services.