Amid an unprecedented global crisis in the fertilizer sector, Morocco's OCP Group made a bold strategic decision at the end of May 2026 to return to 100% of its fertilizer production capacity by the end of June, after having reduced production by approximately 30% since the end of February.
The crisis originated from tensions in the Strait of Hormuz, which caused near-paralysis of half of global sulfur flows, sending the price per ton skyrocketing from $500 to $1,400 within weeks — a threefold increase. The situation was exacerbated by China's ban on sulfuric acid exports until the end of August, as well as damage to Russian sulfur production facilities due to Ukrainian strikes. As a result of these compound shocks, major international companies failed to meet their commitments, creating a significant void in global supply chains. In this turbulent context, OCP's decision reversed the equation and turned the crisis into a strategic opportunity.
OCP officials highlighted that the group is capable of purchasing sulfur at high prices while maintaining profit margins, thanks to its cost leadership based on Moroccan phosphate. This competitive advantage stems from the quality of Moroccan phosphate, which contains lower impurity levels, reducing chemical consumption in the conversion process. The group has also invested for years in logistical infrastructure and deep-sea ports, enabling it to source sulfur from multiple alternative suppliers. With these advantages, OCP has been able to absorb the price shock better than its competitors, who found themselves forced to reduce production. Thus, the profit margin is no longer dependent solely on the sulfur price, but on the group's ability to manage overall costs efficiently.
The TSP product (Triple Superphosphate) represents a strategic pillar in this transformation, as its share increased from 30% to 65% of the group's sales portfolio. This product consumes between 30% and 50% less sulfur per unit produced. India launched its first-ever public tender for TSP. OCP's R&D teams have worked on improving the product's formulation to increase its agricultural effectiveness while reducing its chemical footprint. This shift in the commercial mix was not coincidental but resulted from anticipating the crisis and prior preparation. Data indicates that Asian and African markets have shown strong demand for TSP due to its proven effectiveness in calcareous and poor soils. Thus, OCP transformed the sulfur constraint into a new competitive advantage rather than an obstacle.
In contrast to the decline of international competitors such as American Mosaic, which reduced its capacity by 50%, Morocco today positions itself as a "guarantor of global food security," especially as European countries have expressed interest in building strategic fertilizer reserves similar to oil and gas stocks. This approach has been welcomed by global agricultural organizations, which see it as stabilizing food prices in the second half of the year. Negotiations with the European Union are taking on a new dimension, with Morocco viewed as a reliable partner away from Middle Eastern geopolitical fluctuations. Supply requests from Latin American countries, which previously relied on Russian sulfur, have also accelerated. Thus, OCP is gradually transforming from a mining production company into a key player in global food security.
The group's revenue for 2026 is expected to exceed that of 2025, with a strategic target of reaching 35 million tons of production capacity by 2035, compared to an expected 19 million tons in 2028 and less than 3 million tons in 2006. This ambitious growth reflects Morocco's vision of betting on regional integration in food security, particularly with sub-Saharan African countries. International financial institutions have rushed to upgrade their recommendations on OCP bonds, considering that its model has proven resilient in the face of value chain crises. However, experts warn that returning to maximum capacity requires securing long-term sulfur contracts at reasonable prices, which has not yet been achieved. Despite this, Morocco today finds itself in a rare position of strength, as its fertilizers have become a strategic commodity sought after by governments, not merely a commercial product.