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Fertilizer Crisis Looms: Iran War Threatens Global Food
14 Mar
Summary
- Global food supplies at risk due to ongoing Middle East conflict.
- Fertilizer costs have surged, impacting crop yields globally.
- Strait of Hormuz closure could halve crop yields for some harvests.
Global food security is under significant threat due to the escalating conflict in the Middle East, according to Svein Tore Holsether, CEO of Yara International, a major fertilizer producer.
The war has already caused a sharp increase in the cost of raw materials for fertilizers, with urea prices rising from $487 to $700 per tonne. This price hike, coupled with soaring natural gas prices essential for fertilizer production, creates a "double impact" on the industry.
Holsether emphasized that a year-long closure of the Strait of Hormuz would be "catastrophic," potentially halving yields for certain crops, such as early potatoes in Europe, within the first harvest.
He highlighted that poorer countries are most vulnerable, as Europe's stronger buying power could outbid them for scarce fertilizer supplies, exacerbating hunger in already precarious regions.
The UN World Food Programme echoes these concerns, noting that rising food and fuel prices linked to the conflict will worsen hunger for vulnerable populations globally.
