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The global fertilizer supply system has come to a standstill due to the closure of the Strait of Hormuz amid Israel-US aggression against Iran. Since the start of the conflict, fertilizer shipments have virtually ceased, raising fears of a severe decline in global crop production.
This information was reported by Al Jazeera on Saturday (May 2).
The report states that analysts fear crop yields could drop by up to 30 percent due to the high cost of fertilizers, exacerbated by the closure of the critical Strait of Hormuz. This negative impact could directly affect food prices.
Speaking to Al Jazeera, Maximo Torero, Chief Economist of the United Nations Food and Agriculture Organization (FAO), expressed these concerns. He stated that the situation is worsening because ‘we are racing against the crop planting and harvesting calendar. In some Asian countries, the sowing season has already passed.’
The FAO chief added that major exporting countries like the United States and Brazil might lean towards cultivating crops that can retain more nitrogen in the soil. This means they could shift from growing wheat and corn to soybeans.
Additionally, with rising crude oil prices, some farmers might turn to producing biofuels. Torero noted that the prices of wheat and soybeans have already begun to rise. The situation will continue to evolve throughout the second half of the year, and ‘we expect commodity prices to increase significantly next year.’
He further stated, ‘We anticipate high commodity prices and high food inflation, because the food we consume is not just raw material; it also involves fuel costs.’
The FAO chief warned, ‘We are repeatedly stating that this crisis is intensifying as time goes on. The more the clock ticks and the days pass, the worse the situation becomes.’