Biofertiliser Catalyses Farmers’ Yield and Reduces Climate Impacts

Fertilisers are in Short Supply

Global fertiliser markets have faced pressure since early 2026, the World Bank says, and in the first five months of 2026 fertiliser prices increased by 35 percent.

Around one third of the world’s fertiliser transported by sea passed through the Strait of Hormuz before the Iran war, NPR reported. With the Strait closed, fertiliser shipments from the Persian Gulf slumped and prices rose. The war also created a shortage of natural gas, used for nitrogen fertiliser production.

Farmers in the northern hemisphere were hit with higher prices and lower supplies just as they were deciding what to plant for the upcoming growing season.

Fertilisers cause Climate Change

While supply shortages and large price increases are more recent, fertilisers have long played an outsized role in causing climate change. University of Cambridge researchers who calculated the carbon footprint for the full life cycle of fertilisers found that they are responsible for about five percent of total greenhouse gas emissions. A combination of scalable technological and policy solutions could reduce fertiliser emissions while maintaining food security, they said.

Biologic Fertilisers Solve a Problem

One solution to the issues is biofertilisers. “Biofertilisers” are not chemically synthesised, are biodegradable and can be used as fertilisers, Science Direct explained. They contain living organisms such as fungi or bacteria, and they are phosphate-solubilising and nitrogen-fixing. AgriLife, for instance, has launched fifteen biofertilisers which each contain one bacterial strain and target a specific nutrient supplement.

Pivot Bio in the US, one of the largest producers, explained that microbial nitrogen complements a farmer’s fertiliser management by delivering nitrogen directly to the plant’s roots at the right time. Replacing a portion of traditional nitrogen with microbial nitrogen, for example, can mitigate nitrogen loss from leaching, reduce volatilisation and protect the environment. Growers achieve better profitability, predictability, safety and sustainability.

While the market size is currently small, it could grow significantly. Market Data Forecast said the Asia-Pacific biofertiliser market size was USD1 billion in 2025 and is anticipated to reach USD 3.3 billion in 2034. The region is likely to register the highest growth globally due to increases in farmers’ awareness of the benefits of biofertilisers.

Meticulous Research said growth in the Southeast Asia biofertiliser market in particular is driven by rising demand for organic food, rising inclinations towards sustainable and eco-friendly techniques to improve crop yields and soil health, government policies, and growing concerns about environmental safety.

Startups in Southeast Asia

Seeing the potential of biofertilisers, some large companies in Asia have jumped into the market. Vinachem in Vietnam, for example, said Supe Lam Thao, which it controls, introduced 11 new products for 2026, including bio-microbial enhanced inorganics and urea enhanced with bio-microbial additives.

Startups have also begun to address the market for biological fertilisers.

Bio Ark Global in Singapore, for instance, rebuilds soil infrastructure from organic waste, which restores degraded land, protects food systems and reduces climate risk. They infused beneficial microbes into liquid and solid fertilisers, then delivered them into bio-depleted grounds. The fertilisers contain beneficial microbes for healthy plant growth, improve soil fertility sustainably and minimise runoff by releasing nutrients gradually.

Living Roots in Thailand said it has biological crop programs built around growth stages, plant physiology and tropical field conditions. It designs a full-season programme with one input for roots, one for leaves, one for grain fill and one to fix the soil after harvest. Each is timed to what the crop actually needs at that stage. It is built crop by crop, and its protocol provides detailed guidance based on crop stage, timing and practical application.

There are clearly risks of slow farmer take-up of the solutions and large players continuing to dominate. At the same time, these startups and others could also complement and partner with larger players, since they can differentiate existing products by increasing yield and soil health if positioned well. The differentiated innovations from startups as well as their potential to offset sector risks and leverage government programs offer a potential upside to investors willing to look at early-stage opportunities.

Resolving Shortages

Biofertilisers can be a key part of resolving shortages and costs, now and in the future.

A key issue, Reuters explained, is that fertiliser production is energy-intensive, relying heavily on natural gas as a feedstock, with energy making up as much as ​70 percent of production costs. Even if the Strait opens, higher costs for fertiliser, fuel and shipping may well continue.

In Southeast Asia, Greengrubre noted, the disruptions have also led to shortages. Domestic fertiliser production is limited, so Southeast Asia imports much of its fertilisers from China, the Middle East, Iran, and Russia. The region faces additional challenges from freight delays, high prices, Chinese export restrictions, port congestion, and currency fluctuations.

Biofertilisers can help mitigate the issues. Seeing the potential, Indonesia’s government has launched programs to replace 25 percent of chemical fertilizers with organic alternatives by 2030, and other countries are looking at similar initiatives.

Mitigating Climate Impacts

Biofertilisers can also reduce the impact of fertilisers on climate change. Production and use of synthetic nitrogen (N) fertiliser alone cause 2.4 percent of global emissions, the Institute for Agriculture & Trade Policy said, making it one of the top climate polluting industrial chemicals. The synthetic nitrogen fertiliser supply chain was responsible for estimated emissions of 1.25 billion tonnes of CO2e in 2018, about 21 percent of emissions from agriculture. Nitrogen fertilisers applied to the soil enter the atmosphere as nitrous oxide (N2O), a persistent greenhouse gas with 265 times more global warming potential than CO2. Biofertilisers offer an alternative that helps to mitigate many of these impacts.

Opportunities for Farmers and Investors

While progress towards biofertiliser adoption has been slow, the combination of shortages in supply and rising costs as well as continuing soil degradation and government support could help to propel the sector along faster. Investors who find startups tapping into the growing market could fare well over the coming years.