VINACHEM

The EU reinforced a desire to reduce its dependence on fertilizer imports and bolster domestic production in the name of "food sovereignty" in its Vision for Agriculture and Food, released Feb. 19.

The document, which outlines a vision for European food and agriculture by 2040, characterized the EU's reliance on fertilizer imports, as well as feed and energy, as vulnerabilities to food security amid growing global tensions.

"Reducing these strategic dependencies and derisking supply chains is therefore crucial while supporting a transition to a clean and increasingly resource-efficient low-carbon economy," the report says. Beyond expressing the goal, however, the report does not outline specific steps for how the EU plans to reduce its fertilizer import dependency.

The response from the European fertilizer industry has been positive. "I am pleased to see that the European Commission's vision for agriculture and food recognizes the key role of the EU fertilizer industry in ensuring a stable food supply while maintaining strategic autonomy," said Antoine Hoxha, Director General of Fertilizers Europe, an industry organization. "Moving quickly from vision to action is crucial to reinforce key parts of the domestic agri-food value chain. We are therefore committed to working hand-in-hand with policymakers, farmers, and other stakeholders on policies and legislation that will create a healthy, sustainable, and competitive agri-food sector in Europe."

In 2024, the EU imported nearly 2.6 million mt more nitrogen fertilizers than it exported, according to S&P Global's Global Trade Atlas. The trading bloc has been a net importer of nitrogen fertilizers in eight of the last ten years.

The Feb. 19 document is the latest move in a push to strengthen the EU fertilizer industry. In late January, the European Commission proposed heightened tariffs on several fertilizer imports from Russia and Belarus, with one aim being to promote European fertilizer producers. The tariffs still need to be approved by the European Parliament and European Council. Platts, part of S&P Global Commodity Insights, assessed its FCA France granular urea spot price at Eur465/mt on Feb. 18.

The Vision also drew attention to the need for addressing nutrient pollution and promoting nutrient circularity to "reduce the use of synthetic fertilizers." The report noted additional information to guide efforts to increase nutrient circularity should be expected with an evaluation of the trading bloc's Nitrates Directive in late 2025.  – Source: Platts