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Fertilizer

The Global Food Crisis

This article is a warning. A global food crisis is likely approaching — driven by the collapse of supply chains feeding the agri-food system, a consequence of the war against Iran and the resulting blockade of the Strait of Hormuz. The prospect has gone largely unnoticed by most political and economic actors. Supply crises, as a rule, are resolved through the Law of Supply and Demand. When supply falls, prices rise; those who can afford to pay grumble but pay, while those who cannot find a cheaper substitute. Or do without. But we are talking about food — and food is indispensable to life.

Farmers Face A Fertilizer Crisis At Spring Planting Time

The ongoing blockade of ships crossing the Strait of Hormuz has affected the passage of oil, finished fertilizer products, and the raw materials used to synthesize fertilizer. Exacerbated by limited supply, the price of fertilizer has steadily increased since the beginning of the war. On April 27, the price of urea was at $692 per metric ton, a 47 percent increase since the war began. The price of other fertilizers like diammonium phosphate was at $725 per metric ton. Retail prices of all major fertilizer products have been trending rapidly upwards.

Fertiliser And Grain Bosses Bank $66 Million Selling Shares During War

Senior executives, directors, and major investors from the world’s largest fertiliser and grain companies have sold shares worth more than $66 million (£49 million) during price hikes linked to the Iran war, DeSmog can reveal. Since the outbreak of the conflict in February, provoked by a U.S.-Israeli bombing campaign in Iran, fertiliser prices have increased by almost 45 percent – leading wheat producers in Australia to pare back planting, and some UK farmers to warn they may not sow for the summer season, risking soaring global grain prices.

Food Shock Is Inevitable Due To The Iran War

Global food prices hit their highest levels on record after the 1970s energy crisis, triggered by conflict in the Middle East, once inflation is corrected for. Could we be headed for a new record – the worst food shock ever – as fuel, fertiliser and pesticide prices skyrocket because of the turmoil in Iran? Faced with soaring costs, many farmers are likely to plant less in the coming weeks, leading to shortfalls and rising food prices later this year. This is already happening, but just how bad it will get depends on many factors, from how long the war continues to how hard global warming-fuelled weather extremes hit crops this year.

The Famine Signal: China’s Fertilizer Embargo

China just told its exporters to stop shipping nitrogen-potassium fertilizer blends abroad. China is the world’s largest fertilizer producer. When it closes the spigot, the entire planet feels the drought. This is not a supply chain story, this is a food security story. A human impact story, and if you know your history, it is also a story about what happens in the streets when bread becomes a luxury. China’s move did not happen in a vacuum. Since 2021, Beijing has been systematically pulling back fertilizer exports across multiple categories — nitrogen, phosphate, potassium.
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