The Fertilizer Shock That Could Trigger a Global Food Crisis
Canada Clears Path for West Coast Oil Pipeline Build Felicity Bradstock is a freelance writer specialising in Energy and Finance.
She has a Master’s in International Development from the University of Birmingham, UK.
Following the United States-Israeli attack on Iran and the ongoing war, trade has been severely disrupted between Asia and Europe.
According to the International Energy Agency (IEA), the world is currently facing theworst oil disruption in history.
The energy shortages felt over the last two and a half months have had a knock-on effect on other sectors, particularly on the fertiliser industry, leaving farmers around the globe without the inputs they need for their crops to grow, which could lead to severe food shortages in the months ahead.
Following the attack, Iran shut the Strait of Hormuz, a key trade corridor connecting the Persian Gulf with the Gulf of Oman and the Arabian Sea.
The Strait is used to transport around20 percent of the world’s oilwhen fully operational, but only a small fraction of that has passed through the waters in the last two months.
This has resulted in widespread fuel shortages across many parts of the world, leading governments toration oil and gas use.
One of the sectors being hit hard is the fertiliser industry, as the transport of both fuels to produce inputs and fertiliser itself is significantly restricted.
The shortage comes at the worst time for much of the northern hemisphere, where it is the prime planting season.
“In the worst case, this means lower yields and crop failures next season.
In the best case, higher input costs will be included in food prices next year,”explainedthe deputy executive director of the World Food Programme, Carl Skau.
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