Deep dive: Circular fertilisers reduce the vulnerability of Swedish food production

Food security is put at risk when the Strait of Hormuz is closed

Sweden has virtually no domestic production of mineral fertiliser for agriculture. We are therefore highly dependent on imports, which makes us particularly vulnerable when access to agricultural inputs is disrupted. A significant share of the world’s mineral fertiliser passes through the strategically located Strait of Hormuz. The strait is also a bottleneck for liquefied natural gas (LNG), which is used in fertiliser production in different parts of the world. Disruptions to transport due to the ongoing conflict in the Middle East hit global food production hard and risk higher food prices for consumers. Even a short disruption can have consequences because agriculture is seasonal. In Asia, the effects are already being felt, with rice production in Thailand, for example, affected by the shortage of mineral fertiliser.

With the aim of easing household finances for Swedish consumers, VAT on food was reduced in April. At the same time, food prices may rise as essential nutrients become increasingly expensive. As an import-dependent country, Sweden’s economy is hit hard by the geopolitical situation. According to the Federation of Swedish Farmers (LRF), costs for Swedish agriculture have increased by SEK 1.8 billion in just a few weeks because of rising diesel and fertiliser prices. The Government recently announced a SEK 1.6 billion crisis package for agriculture due to the crisis in the Middle East. With the aim of securing upcoming harvests, area-based support will be provided to crop production. The support is much needed for Swedish farmers, but it does not solve the underlying vulnerability: that agriculture depends on imported inputs whose price and availability are determined by global development. To stand stronger in future crises, Sweden therefore needs to make use of the plant nutrients already available in the country — not least by processing animal manure and other organic residual flows into circular fertilisers.

Processing animal manure optimises the use of plant nutrients

Animal manure contains both nitrogen and phosphorus — essential nutrients for Swedish crop production. Today, a large share of our animal manure is returned to agriculture, but not in an optimal way. When large amounts of manure are spread on fields within a limited area, this can cause problems with nutrient leakage into nearby watercourses and our inland sea, particularly in the case of phosphorus. At the same time, phosphorus is a finite resource. By processing and transporting phosphorus to crop farms with nutrient deficits, Sweden can make better use of these nutrients, reduce leakage into watercourses and the Baltic Sea, and partly replace imported mineral fertiliser.

BalticWaters, together with SLU and RISE, has shown that phosphorus can be used more efficiently in a regional circular system. With relatively simple technology, it is possible to produce a phosphorus-rich biofertiliser that can be transported to crop farms in need of phosphorus. When the biofertiliser replaces purchased mineral fertiliser, separation and transport become economically viable — and as an added benefit, the environmental burden on the Baltic Sea is reduced. Further processing of biofertiliser into pellets for long-distance transport is more expensive, with drying being the cost-driving process. But when mineral fertiliser becomes more expensive, and values such as reduced import dependence, strengthened preparedness and reduced nutrient leakage into water and seas are taken into account, the investment may still be socio-economically justified. Increased circularity of nutrients could therefore be an important way forward for reducing our dependence on imports — something also noted by the Swedish Food Agency and the Swedish Board of Agriculture in their report on Swedish food supply.

More biogas — more digestate — greater opportunities for circular fertiliser products

Swedish biogas production increased by 6 percent in 2024, and the amount of animal manure digested increased by 25 percent. A majority, or 92 percent, of all digestate was used as fertiliser in agriculture, corresponding to an 18 percent increase compared with the previous year. Biogas therefore provides not only energy — it also provides more digestate which, if further processed, can be used over larger areas and replace some imported mineral fertiliser. As biogas production is expanded, the amount of digestate will also increase. This makes it even more important to invest now in technology that can process digestate into transportable fertiliser products. In the Government’s 2026 budget, just over SEK 1 billion was allocated in support for expanded biogas production. While the biogas sector benefits from investments in expansion, targeted policy instruments to promote the use of digestate are still lacking. A market for biofertiliser will not emerge by itself; it requires additional measures. Part of the Government’s investments should therefore also be directed towards making use of digestate as a resource in agriculture.

What is needed

Investments in technology and targeted support are needed to realise more circular fertilisers. Subsidies, tax relief and other policy instruments that make it profitable for farmers to transition need to be placed on the political agenda. International examples show that economic incentives can accelerate the adoption of technology that both reduces climate emissions and strengthens the competitiveness of agriculture. By redistributing phosphorus, we can both increase the robustness of agriculture — generate economic value and reduce nutrient leakage to the Baltic Sea. As the Government now allocates support to increase biogas production, part of that support could be directed towards processing digestate into a transportable, phosphorus-rich fertiliser product. This would be in line with ambitions for increased circularity. By investing in more circular fertilisers, we are also building a more robust food system — something that is good for Sweden from both an economic and environmental perspective. More optimised use of animal manure can therefore become an important piece of the puzzle for Swedish food supply in times of geopolitical instability.

In Sweden’s environmental quality objective “Zero Eutrophication”, it is stated that manure is increasingly used in a resource-efficient way so that both nitrogen losses to air and water and phosphorus losses to water steadily decrease over time. Here, the wording needs to be strengthened and made more detailed to create momentum in the work - and to enable follow-up of progress. Plant nutrients should end up where they do good, not where they cause harm. Turning animal manure into a resource is not only an environmental measure - it is an investment in Swedish preparedness, profitability and future food security.

Policy points

1. Direct parts of biogas support towards processing digestate

When the state invests in more biogas, the support should also include technology that separates, concentrates and processes digestate into transportable fertiliser products.

2. Create economic incentives for circular fertilisers

Introduce investment support, tax relief or other policy instruments that make it profitable for farmers to replace imported mineral fertiliser with biofertiliser.

3. Make phosphorus redistribution part of Swedish food preparedness

Sweden should build systems for moving phosphorus from livestock-dense areas to crop farms with nutrient deficits, with clear follow-up of how the nutrients are used and how leakage is reduced.