On Monday, March 16, the Minister of Economy, Trade and Business and the Minister of Agriculture, Fisheries and Food met with representatives of the agri-food sector to analyze the impact of the conflict in the Middle East and to design the most effective measures to mitigate its negative effects, which are being particularly acute in sectors such as agriculture and fertilizers. Among those in attendance were the Secretary of State for Trade and the Secretary General for Agricultural Resources and Food Security. ANFFE participated on behalf of fertilizer manufacturers.

The president of ANFFE, Ignacio García, gave a comprehensive presentation on the current situation and the impact the war in Iran is having on the fertilizer sector. He highlighted the supply difficulties, both for key raw materials (natural gas, etc.) and for fertilizers, due to the closure of the Strait of Hormuz. He emphasized the impact of global market conditions on the sector and the effect these are having on the industry's competitiveness, both due to decreased product availability and increased raw material prices. He also noted the current uncertainty in the sector, as the effects will largely depend on the duration of the conflict.

It was emphasized that domestic manufacturers are making great efforts to supply products for this fertilization campaign and that there is no situation of speculation on the part of the industry, but a transfer of costs, since it is necessary to continue manufacturing with the current prices of raw materials and energy and that there is a risk replacement mode due to the uncertainty of consumption.

The real problem lies in the current lack of profitability in agriculture, and therefore, the need to establish immediate support measures for farmers was emphasized, enabling them to afford fertilizer purchases. These measures should be linked to fertilizer application rather than a general aid package for all farmers. Regarding the proposed suspension of the CBAM (Comprehensive Agricultural Marketing Agreement), it was indicated that a temporary suspension of this mechanism would be incomprehensible without equivalent measures in the ETS (European Fertilizer Standards) to prevent a negative impact on European fertilizer manufacturers.