The disruption to shipping through the Strait of Hormuz is already affecting agricultural harvests, threatening to lower farm yields and increase food prices, according to Alvaro Lario, the head of the International Fund for Agricultural Development. He explained that problems with fertilizer shipments and rising fuel and transport costs, worsened by El Niño and Black Sea wheat supply issues, are raising costs in the food supply chain.
Iran is trying to control the Strait of Hormuz to exert pressure on Washington, which is enforcing a naval blockade of Iranian ports. Although initial stocks of fertilizer and fuel helped lessen the impact, long-term uncertainty has led to cautious planting and less use of fertilizers, with higher fuel costs also impacting harvesting.
In the third quarter, agricultural commodity prices went up by 13%, and further increases are expected in the coming months. Countries that rely on imported fertilizer, fuel, and food, such as those in Southeast Asia and the Gulf region, are especially vulnerable. If the U.S. and Iran do not agree on a UN-backed plan for moving fertilizer through the Strait soon, it could lead to a food security crisis in parts of Asia and Africa. This uncertainty may push small farmers to shift from higher-value crops to those that provide quicker income.
With information from Reuters
