Countries are nearing a period of food shortage. In particular, 50 % of the world’s food products depend on synthetic fertilizers. This was warned by analyst Lucas Ekouame.
In the Northern Hemisphere, the planting season is beginning, but the ability to use fertilizers is at its most limited.
Due to problems in the Strait of Hormuz, about 30 % of fertilizer deliveries and 20 % of liquefied natural gas (LNG) shipments have stopped. China has also imposed export restrictions, which threatens another 30 % of the market. Because most synthetic fertilizers are made from natural gas, its shortage leads to fertilizer shortages.
The Financial Times also warns that the world could face one of the largest food crises.
The conflict in the Middle East has put fertilizer deliveries at risk and triggered a sharp rise in energy prices. Developing countries will be the most vulnerable in this situation. Also, agricultural regions in India, Bangladesh, and the U.S. are at risk: farmers there are already facing shortages of gas, fuel, and fertilizers.
These disruptions were caused by the shutdown of fertilizer producers in Qatar and Algeria. The blockade of the Strait of Hormuz worsened the situation, as rising energy prices increased the costs of transportation, processing, and storage.
Experts believe the ongoing war in the Middle East could sharply raise global food prices. The biggest hit will be felt by corn growers, as this crop has the highest demand for nitrogen fertilizers. Rising corn prices — a base for animal feed — will raise production costs in livestock and poultry farming.
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