Seaweed as a Substitute for Russian Fertilizer. Evan Li, Impact Investing Intern. Charlotte Latin School

The European Union has announced that by July 16, 2022, the sale of phosphate-based soils containing more than 60 mg of cadmium per kg of P2O5 will be banned. In addition, the EU has allowed companies that sell soils with a cadmium content of less than 20 mg to place a green label advertising their environmental-friendly status on their packaging. These policies underscore the EU’s growing commitment to transition to cleaner soils, free from heavy metals. This commitment to cleaner fertilizer and more environmentally friendly practices could prove to be a catalyst for the seaweed market in the EU. 

Seaweed farming has existed in Asia for centuries, but now, with increasing environmentally friendliness, has slowly been gaining traction in Europe. The stricter regulations on phosphate-based fertilizers and the ability to appeal to a growing population of environmentally-conscious consumers would be a great incentive for companies to turn to fertilizers derived from seaweed. 

Eucheuma farming, Philippines, CC
By Derek Keats from Johannesburg, South Africa

It must be recognized however that the quality of seaweed fertilizer will be a major consideration for prospective investors. It does not matter, after all, how large the base of environmentally-conscious consumers is if the fertilizer is unusable. Luckily, seaweed fertilizer is a viable replacement for current fertilizer, and its environmental benefits extend past its production. First, by containing substances that can bind the nutrients to the soil, seaweed fertilizer helps reduce leaching, a process in which vital nutrients are pushed out of the area where a plant’s roots can reach them. In addition, the fact that seaweed fertilizer contains nutrients that are more easily absorbed and that seaweed fertilizer can also be absorbed through the leaves of the plants allows for a more efficient nutrient intake. Therefore, not only is seaweed fertilizer able to provide the necessary nutrients that current fertilizer provides, but also has added benefits such as increased nutrient absorption. 

The invasion of Ukraine, surprisingly, has also increased the economic viability of seaweed farming. Most of the fertilizer in the EU is imported from Russia. However, due to the current invasion, Russia has banned the export of fertilizer until June 2022. Such an action is unheard of in the globalized agricultural market and will have detrimental effects on farmers, however, it could be the catalyst for an explosion in the seaweed market. First, by removing the EU’s dependence on Russian-produced fertilizer (most of which is nitrogen-based), Russia’s ban opens up opportunities for national companies to take over the fertilizer market. Taking into account the fact that the EU has emphasized greener fertilizer, seaweed fertilizer could very well mean the market takeover of seaweed fertilizer. And this will not just be a short term boom. The Ukraine invasion and its subsequent sanctions has taught countries that in some markets they need to be self-sufficient instead of outsourcing to other countries. Considering that the tension between European countries and Russia is unlikely to die down soon, the EU has every incentive to move away from Russian fertilizer. 

Seaweed farming is not just exciting for its economic potential though. Echoing what CIR’s previous blog on seaweed farming, seaweed farming also has tremendous environmental potential. As a young person, I have been disillusioned by large companies. Their claims of environmental change come too slow and are often surface level, nothing more than an attempt to earn more money. But seaweed farming, and other smaller industries, give me hope. Instead of covering environmentally detrimental practices in a veneer of green, they fundamentally rethink products (like fertilizer). They create, innovate, and promote practices that can truly challenge climate change, and that makes me excited.

For more, see: "Seaweed Farming as Community Development" by Ethan Li. November, 2021.