War in Middle East creating fertilizer shortages
PRINT ALL READINGS (PDF)Fertilizer - Level 4
The war in Iran has increased fertilizer prices. Ships cannot pass through the Strait of Hormuz. Iran has pretty much shut down the Strait. The Persian Gulf region is a key supplier of fertilizer ingredients. Gulf nations are the world's top exporters. The war has disrupted around 35 per cent of the world's fertilizer trade. Farmers now have to pay up to 35 per cent more for fertilizer. This will lead to smaller harvests and higher food prices.
The U.N. said the crisis will cause a global food shortage. It said that in the worst case, there will be "lower yields and crop failures next season". It added that in the best case, food prices will be higher next year. The UN's Food and Agriculture Organization said: "It is a systemic shock affecting agrifood systems globally." It added: "Farmers are facing a dual cost shock. They have more expensive fertilizers alongside rising fuel costs."
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Fertilizer - Level 5
The war in Iran has increased fertilizer prices. It has disrupted shipping through the Strait of Hormuz. Iran's near shutdown of the Strait is because of attacks by the U.S. and Israel. The Persian Gulf region is a key supplier of fertilizer ingredients. Gulf nations are among the world's top exporters. The recent fighting has resulted in around 35 per cent of the world's fertilizer trade being disrupted. Farmers are having to pay up to 35 per cent more for fertilizer. Experts predict farmers will be planting less corn, rice, and wheat. This will lead to smaller harvests and higher food prices.
The United Nations said the crisis will cause a global food shortage. The World Food Programme 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." An economist at the UN's Food and Agriculture Organization said: "It is a systemic shock affecting agrifood systems globally." It added: "Farmers are facing a dual cost shock. They have more expensive fertilizers alongside rising fuel costs, affecting the entire agricultural value chain."
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Fertilizer - Level 6
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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