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Iran War Sparks Global Fertiliser Shortage and Threatens Food Prices
The war has disrupted about 30% of global urea trade, risking crop failures and pushing up food prices, with supply chains strained across multiple continents.
- On Friday, Iran's United Nations ambassador Ali Bahreini announced Tehran will allow agricultural shipments through the Strait of Hormuz following a UN request, marking the first breakthrough after a month of war.
- WTO director-general Ngozi Okonjo-Iweala stated the conflict has destabilized global energy and fertilizer trade, calling it the worst disruption to the world trading system in 80 years.
- Agricultural engineer Dirk Peters said "crops out in the field need nitrogen now" to ensure healthy yields; short delays in fertilizer delivery can reduce maize yields by about 4 per cent.
- Fertilizer specialist Deepika Thapliyal reported supply shortages caused a "very big jump" in prices, affecting farmers from the United States to Brazil and likely forcing higher food prices globally.
- Long-Term instability threatens global food security; in the worst case, crop failures could occur next season, while higher input costs may be reflected in food prices next year.
11 Articles
11 Articles
Sydney Morning Herald
Iran war sparks global fertiliser shortage and threatens food prices
With nearly a third of global fertilisers passing through the currently all-but-closed Strait of Hormuz, farmers worldwide fear crop failures and surging food prices.
The Iran war is causing mineral fertilizer prices on world markets to rise by 30–40 percent, similar to the surge at the start of the Ukraine war in 2022. Europe remains largely stable in the short term, as farmers have already secured their spring crops, but rising energy prices are impacting production. Consumers face the prospect of higher food prices.
There are many correlations between rising oil or energy prices and agricultural prices. Even more so when 30% of the world trade in agricultural fertilizers passes through the Strait of Ormuz. But the impact on food prices is generally longer.
Mineral fertilizers have increased by around 30 to 40 percent on world markets since the beginning of the year.
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