Hormuz Closure Threatens Food Security as Fertilizer Prices Jump 31%
Updated
Updated · InsideClimate News · Jun 5
Hormuz Closure Threatens Food Security as Fertilizer Prices Jump 31%
3 articles · Updated · InsideClimate News · Jun 5
Summary
About one-third of global seaborne fertilizer trade moved through the Strait of Hormuz before Iran shut the lane, prompting U.N. and World Bank warnings that this year’s fertilizer prices could rise 31%.
Máximo Torero Cullen of the FAO said the disruption has created an unprecedented shock to farm inputs that could curb food production through next year, lifting food prices and worsening hunger.
U.N. analysis says even moderate supply disruptions could push tens of millions deeper into hunger and poverty, with South Asia, East Africa and the Middle East especially exposed because of import dependence.
Experts say the war’s energy shock is compounding the fertilizer crisis because synthetic fertilizer and food transport rely heavily on fossil fuels, increasing pressure on already fragile supply chains.
The U.N. and researchers urged immediate support for farmers while pushing longer-term shifts toward local production, green ammonia and agroecology, and warned against expanding food-crop biofuels during shortages.
With fertilizer trade blocked by war, can green agriculture scale up in time to avert a global food catastrophe?
A key trade route is closed. Is our fossil-fuel-dependent food system collapsing under geopolitical and climate pressure?
Strait of Hormuz Shutdown Sparks Global Fertilizer Shock: Food Prices, Farm Incomes, and Supply Chains at Risk
Overview
The closure of the Strait of Hormuz has sent immediate shockwaves through global markets, drastically reducing trade flows for critical commodities. Fertilizer trade is hit especially hard because it is given less priority than oil, with fewer resources dedicated to securing its passage through this volatile region. Ship captains and potential navy escorts prefer to focus on higher-value oil shipments, and the United States is unable to provide naval protection for fertilizer. This lack of support, combined with the absence of strategic fertilizer reserves in G7 countries, has made the fertilizer supply chain highly vulnerable, leading to sharp price increases and threatening global food security.