FAO admits fertilizer problems amid protracted crisis in Iran

The main problem could be the disruption of shipping in the Strait of Hormuz, according to trade experts at the UN Food and Agriculture Organization.

The Iranian crisis, if prolonged, could impact global agriculture and, consequently, food prices.

According to estimates by trade experts at the UN Food and Agriculture Organization (FAO), the disruption of shipping in the Strait of Hormuz could be the main problem. “About a quarter of the world’s fertilizer is transported through the Strait of Hormuz. Whether this will create a global problem obviously depends on the duration of the crisis,” the experts said in a commentary.

As for Iran’s own food supply, import problems could arise given the shortage of hard currency. “As for wheat, a key import commodity, most of it comes from Russia and Kazakhstan, that is, overland, without passing through the Strait of Hormuz. The same applies to rice from Pakistan, although not from India, the other main supplier,” the commentary states. If the conflict drags on, it’s highly likely that problems will arise with maize—a livestock feed primarily transported by sea—as well as oilseeds, sugar, and tea.

FAO experts, however, refrain from making long-term forecasts given the rapidly changing situation and the inability to access accurate data due to objective logistical difficulties.

Tags: fertilizers, Iran, corn, rice, wheat