How the Iran war threatens global food supply
3 hours ago
- #Global Food Crisis
- #Middle East Conflict
- #Fertilizer Shortage
- About a third of global fertilizer shipments pass through the Strait of Hormuz, now disrupted due to the U.S.-Israeli war with Iran.
- Fertilizer prices have risen by around 30% in some regions, impacting global food production.
- Major Gulf producers like Saudi Arabia, UAE, Kuwait, and Iran supply raw materials for fertilizers, now in short supply.
- Countries like Pakistan, India, and Brazil heavily rely on these supplies, with some halting production due to spiking gas and oil prices.
- Unlike the 2022 Russia-Ukraine war, there are no quick substitutes or strategic stockpiles for fertilizers this time.
- South Asia (Bangladesh, India, Pakistan, Sri Lanka), East Africa (Sudan, Kenya, Somalia), and the Middle East (Turkey, Jordan) will be most impacted.
- Farmers in India worry about high fertilizer costs and shortages ahead of the June planting season.
- Rising oil prices due to the Strait's closure will also affect food production by increasing costs for machinery and transportation.
- Higher food prices could severely impact poor households, where half the budget is spent on food, risking malnutrition, especially for children.
- Export markets for major producers like Brazil and India are also suffering, affecting price expectations for crops like rice and fruits.
- If the Strait reopens soon, the disruption may be short-lived; otherwise, global food prices and supply chains face prolonged strain.