Hormuz crisis pushes up fertilizer costs for Asian farmers – Washington Post
The Iran war is disrupting fuel and fertilizer supplies from the Middle East, pushing Asian farmers to cut planting or reduce fertilizer use at the start of key growing seasons, The Washington Post reported.
The disruption stems from damage to Persian Gulf gas infrastructure and the rival US-Iran efforts to restrict movement through the Strait of Hormuz, which have prevented key supplies of fuel and urea fertilizer from leaving the Middle East, according to the report.
Urea, a nitrogen-rich fertilizer used to boost crop yields, has been especially affected. The report cited market analysts saying about 30% of the world’s urea supply has effectively been wiped out, with spot prices up 40% since February.
The impact is being felt first in countries entering major planting periods, including Thailand, the Philippines, Bangladesh and Australia, where farmers are cutting planting areas or using less fertilizer, steps that could reduce harvests later this year.
The report said India and Brazil, two of the world’s largest agricultural producers, are expected to ramp up urea orders in June, raising the risk of wider pressure on global food supplies if shipping through the Persian Gulf does not recover.
UN Food and Agriculture Organization officials warned the war had become a disruption at the center of the global food system, with possible effects on commodity prices, inflation and growth if the crisis continues.
The report said the fallout could worsen if a major El Niño climate pattern brings extreme heat and drought this year, adding another threat to harvests already hit by higher fuel and fertilizer costs.
