Fertilizer prices rise in Hungary amid falling demand

Fertilizer demand and prices in Hungary have shown significant volatility, impacting agricultural cost projections for upcoming sowing seasons. According to data from the Agricultural Economic Institute (AKI), fertilizer sales volumes dropped sharply in the second quarter of 2026 compared to the same period in 2025.

While sales volumes decreased, prices for most fertilizers rose. Specifically, urea prices increased by 15.4 percent year-on-year, and ammonium nitrate saw a 10.2 percent increase. Within the 2026 calendar year, prices for urea and ammonium nitrate rose by 16.2 percent and 15.2 percent, respectively, between the first and second quarters.

Several factors are contributing to this market instability, including drought, low crop prices, and reduced yields. Additionally, international geopolitical tensions—notably US-Iran conflicts and potential disruptions in the Strait of Hormuz—alongside the EU's Carbon Border Adjustment Mechanism (CBAM) and rising gas prices, are creating supply uncertainty and upward price pressure.