Businesses and farmers seek ways to cope as fertilizer prices rise

Rising fertilizer prices are forcing manufacturing companies and farming units to find ways to respond as geopolitical developments in the Middle East spread to Vietnam’s agricultural sector, raising concerns about higher input costs.

Middle East disruption lifts global fertilizer prices

According to a report from the Digital Transformation Department, Ministry of Agriculture and Rural Development, the Hormuz Strait—used to transport one-third of the world’s fertilizer supply—has been disrupted due to Middle East conflict. This has pushed fertilizer prices higher and tightened supply.

In March, global fertilizer prices increased by 5% to 15%.

Domestic fertilizer prices rise across regions

In the domestic market, the ministry’s statistics show fertilizer prices increased across the board in March. In the Southern region, the Korean DAP fertilizer price rose by 50,000 dong per 50kg bag compared with the first two months of the year, reaching 1,130,000 dong per 50kg bag.

• China DAP and China Urea: up 1,000 dong per 50kg bag
• Phu My Urea and International NPK 20-20-15+TE: up 3,000 dong per 50kg bag
• NPK 20-20-15+TE varieties Co Bay and Co Vang: up 50,000 dong per bag to 870,000 dong and 785,000 dong, respectively

In Q1-2026, prices of several main fertilizer types increased year-on-year: Chinese Urea reached 510,300 dong per bag, up 26,100 dong (5%); Chinese DAP reached 885,300 dong per bag, up 90,000 dong (11%); and International NPK 20-20-15+TE reached 1,191,000 dong per bag, up 91,000 dong (8%).

Supply tightness and higher logistics costs

The report also states that domestic fertilizer prices are expected to continue rising next month if the Middle East conflict does not ease. It adds that fertilizer supply will remain tight due to higher logistics costs, which could seriously affect the movement of goods between countries worldwide.

Businesses and farmers adopt coping strategies

Experts say higher fertilizer prices are significantly affecting the profits of agricultural producers, prompting farmers to adopt measures to balance costs and returns.

Cooperatives shift fertilizer use and optimize logistics

Mr. Lam Tuan Ngoc, Director of Tuan Ngoc Cooperative (Long Truong Ward, Ho Chi Minh City), said that when input costs rise—especially for imported fertilizer—cooperative members have implemented strategies including switching to organic fertilizer, increasing in-situ fertilizer use, and reducing imported fertilizer types.

He also said the cooperative is implementing logistics optimization by narrowing the supply radius to reduce costs amid rising input costs.

Producers increase capacity and manage distribution

At an online conference on price stabilization and ensuring fertilizer supply for farming organized by the Department of Cultivation and Plant Protection at the end of March, representatives of several fertilizer manufacturers said they are maximizing production capacity to ensure market supply.

PetroVietnam Fertilizer and Chemicals Corporation said its urea and NPK plants have increased production capacity to meet national demand, while distribution system management has been strengthened to prevent hoarding and speculative activities.

Bien Hoa Fertilizer Joint Stock Company said it expected to supply about 230,000 tons in Q1 and continue supplying over 220,000 tons in Q2. The company also noted that, with rice prices not high, it kept selling prices stable for a long time and only adjusted slightly at the end of March to offset costs.

Industry accepts margin pressure to support farmers

Fertilizer producers said that despite input cost pressures, they are willing to accept reduced profit margins and keep prices reasonable to support agricultural production and stabilize the domestic market.

Expert recommendations: diversify inputs and improve efficiency

Doctor Phung Ha, President of the Vietnam Fertilizer Association, said companies should quickly diversify raw material sources to replace sulfur or ammonia that are currently stuck in conflict-affected regions.

He also emphasized that optimizing production processes and reducing energy consumption are essential to ease cost burdens on output, helping firms balance costs and profits and support farmers during difficult times.

Farming response: apply the “four-rights” principle

Dr Phung Ha said fertilizer price volatility can also be an opportunity for farmers to adjust farming practices. He recommended applying the four-rights principle for fertilizer use: right source, right rate, right type, and right timing to optimize fertilizer use and sustain productivity.

He added that farmers can switch to acceptable alternative fertilizer sources, including organic fertilizers and on-site products produced from agricultural by-products.