War in Middle East creating fertilizer shortages
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READING:
The war in Iran has sharply increased fertilizer prices because it has disrupted shipping through the strategic Strait of Hormuz. Iran's near shutdown of the Strait is in retaliation for attacks by the U.S. and Israel. The Persian Gulf region is a critical supplier of fertilizer ingredients. Qatar, Saudi Arabia, Iran, and Oman are among the world's top exporters. The ongoing hostilities have resulted in around 30 to 40 per cent of the world's fertilizer trade being significantly disrupted. Farmers worldwide are having to pay up to 35 per cent more for fertilizer. Experts predict farmers will be planting fewer crops like corn, rice, and wheat, which will lead to lower yields and higher food prices.
The United Nations has stated that the crisis will cause a global food shortage. Carl Skau of the World Food Programme spoke about the impact the conflict might have. He outlined two scenarios, saying: "In the worst case, this means lower yields and crop failures next season. In the best case, higher input costs will be included in food prices next year." Maximo Torero, Chief Economist of the UN's Food and Agriculture Organization, said: "It is a systemic shock affecting agrifood systems globally." He added: "Farmers are facing a dual cost shock. They have more expensive fertilizers alongside rising fuel costs, affecting the entire agricultural value chain, including irrigation and transport."
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