Fertilizer Production Decline Due to War Raises Food Crisis Risk in Asia and Africa

asia, africa - Tensions in the key chokepoint of the Hormuz Strait between the US and Iran impact fertilizer supply in Asia and Africa, risking food shortages. War-related disruptions affect crop yields, potentially leading to a food competition.

Fertilizer Production Decline Affects Food Supply Chain

The uncertainty in the Hormuz Strait, a focal point of US-Iran tensions, not only impacts energy but also hits the food sector in Asia and Africa, heavily reliant on Middle East fertilizers.

CEO Warns of Impending Food Crisis

Yara's CEO, Svein Tore Holsether, predicts a decrease in crop yield due to reduced fertilizer use, potentially sparking a 'competition war' in the food industry.

Impact on Asia's Rice Fields

According to BBC analysis, the Iran war directly affects rice fields in Asia, with rising costs and supply issues pushing farmers to abandon production in regions like the Mekong Delta.

The UN reports that about one-third of fertilizers like urea, potassium, ammonia, and phosphate pass through the Hormuz Strait under normal circumstances.