Closure of the Strait of Hormuz could trigger global food shock – FAO

Source:  Profinance
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The Food and Agriculture Organization of the United Nations (FAO) has warned that a possible closure of the Strait of Hormuz could cause a major “systemic shock” to the global agri-food sector. According to the agency, the disruption could evolve into a global food price crisis within six to twelve months.

FAO stressed that the threat is not temporary and that the window for preventive action is rapidly closing. The organization called on governments, international financial institutions, and the private sector to urgently develop alternative trade routes, avoid export restrictions, and ensure the uninterrupted flow of humanitarian supplies.

FAO Chief Economist Máximo Torero said countries must strengthen the resilience of their agricultural systems and improve their ability to adapt to the current risks. He warned that without swift action, the consequences could be especially severe for import-dependent nations and countries with fragile food security systems.

The agency also noted that the FAO Food Price Index rose for the third consecutive month in April, supported by high energy prices and supply chain disruptions linked to the conflict in the Middle East. In the short term, FAO recommends redirecting trade through alternative land and maritime routes while avoiding export restrictions on energy, fertilizers, and agricultural commodities.

In the medium term, FAO is urging governments to provide emergency credit lines for farmers, expand digital farmer registries to speed up aid distribution, and reactivate emergency food financing mechanisms first introduced in 2022. The organization also warned that the crisis could worsen due to the expected return of the El Niño weather phenomenon, which may trigger droughts and disrupt rainfall patterns across several regions worldwide.

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