With the war in the Middle East, 45 million people risk hunger
Rights — di Andrea Barolini
Not just oil: the war in the Middle East is also disrupting the fertiliser market, with serious risks for agriculture and food supply.
With the war in the Middle East, 45 million people risk hunger
Not just oil: the war in the Middle East is also disrupting the fertiliser market, with serious risks for agriculture and food supply.
With the war in the Middle East, attention immediately shifted to energy markets. The cost of oil has risen rapidly in recent weeks, and even a hypothetical reopening of the Strait of Hormuz would not allow exports to resume immediately. Technical time would still be needed to restore pre-crisis flows. But hydrocarbons represent only one aspect of the problem. Also cause for concern are numerous other products that pass through the maritime corridor, starting with nitrogen-based fertilisers.
Vessels are not moving through the #StraitOfHormuz, raising fertilizer costs. The delay will push food prices up later in the year.
With diplomacy, countries can still prevent this from becoming a global food crisis.
🎙️@FAO Chief Economist @MaximoTorero: youtu.be/sKUlKxcBdlk
With diplomacy, countries can still prevent this from becoming a global food crisis.
🎙️@FAO Chief Economist @MaximoTorero: youtu.be/sKUlKxcBdlk
Urea, calcium nitrate, ammonium sulphate and ammonium nitrate are essential fertilisers for crops, being among the most widely used in conventional agriculture, particularly for the production of cereals. These are mineral fertilisers classified as "simple" because they contain a single nutrient element: nitrogen.
What does the closure of the Strait of Hormuz have to do with fertilisers
The blockade of navigation through the Strait of Hormuz, which separates Oman from Iran, is severely disrupting the fertiliser market. It is precisely through this maritime corridor that 33 per cent of the world's traded fertilisers pass. And the Middle Eastern countries themselves are major producers: large manufacturing plants are located, for example, in Qatar, the United Arab Emirates, Jordan and the Islamic Republic itself.
Nearly all of these facilities have been shut down — in some cases due to attacks, in others as a precautionary measure. Furthermore, nitrogen-based fertilisers are manufactured from ammonia, which is obtained through hydrogen. And hydrogen, in turn, is often produced by burning gas.
Hence the entanglement between war, navigation, fossil fuels and food. A combination that, according to the United Nations Food and Agriculture Organization (FAO), could translate into hunger for 45 million people worldwide. The same UN agency has explained that since the conflict began, fertiliser production has plummeted by 30 per cent.
The price per tonne of urea has risen from €537 to over €800 in three months
At the same time, prices have risen sharply. A tonne of urea (one of the most widely used fertilisers in the world) cost €537 at the beginning of February, whereas now it costs more than €800. A dynamic driven both by the fall in supply and the rise in gas prices — and one that risks making itself felt everywhere in the world.
Hormuz disruption raises risk of global food shock, traders warn ft.trib.al/k5KrU0u
India and China purchase 20 per cent of their fertilisers from Gulf countries. In Pakistan the share rises to 30 per cent; in African nations such as Sudan it reaches 54 per cent. But even distant nations such as Brazil and Mexico are far from immune, with shares of 15 and 10 per cent respectively.
Italy imports 70 per cent of the fertilisers it uses
Italy too is heavily dependent on imports: by as much as 70 per cent, according to Coldiretti. The main suppliers to the national agricultural sector are Egypt, Algeria, Libya, Turkey and Morocco. The problem, however, is that these countries are themselves dependent on gas to produce fertilisers. And even if the fossil fuel were available, sharp price increases stemming from its cost are to be expected.
🎤 Strait of Hormuz 'blockade' heightens food insecurity fears @FAO
🎤 Middle East war risks plunging many Iranians into poverty @UNDP
🎤 Budget crisis threatens future of key @UNHumanRights committees
soundcloud.com/unradio/un-new…
🎤 Middle East war risks plunging many Iranians into poverty @UNDP
🎤 Budget crisis threatens future of key @UNHumanRights committees
soundcloud.com/unradio/un-new…
The risk, in short, is that farming may become extremely difficult in some parts of the world — and that, at the same time, food prices could rise sharply. Hence the FAO's alarm over the dangers faced by tens of millions of people.