Nebojsa Micic warns that global fertilizer shortages and Middle East turmoil may drive up domestic agricultural costs in Serbia.
Nebojsa Micic, vice president of sales for the chemical division of Elixir Group, stated that Serbia is not isolated from global market movements, noting that prolonged disruptions in international trade of mineral fertilizers could affect domestic agriculture. A JPMorgan report suggests global food prices could rise by five percent in the first half of 2027, driven largely by fertilizer shortages and high temperatures. While Serbia relies heavily on Russia for fertilizer imports, the turmoil in the Middle East, specifically the Strait of Hormuz, impacts global urea prices which have doubled in the last year. Micic noted that while there is no immediate shortage in Serbia due to domestic production capacity, rising energy prices and input costs are already pressuring production. Agricultural economist Zarko Galetin added that the creeping rise in prices of primary agricultural products is steady and depends on geopolitical uncertainty. These rising costs are forcing farmers to make cautious planting decisions, such as switching to crops that require less nitrogen, which may lead to a smaller harvest in 2027.