The specter of a new food crisis looms over the global market—and the impact threatens to be even greater than after Russia’s invasion of Ukraine. Rising prices, shrinking margins for farmers, and a looming food crisis will also directly affect the retail sector, warns the UN Food and Agriculture Organization (FAO).
Fertilizer as a catalyst
As geopolitical tensions around the Strait of Hormuz escalate, millions of tons of fertilizer are blocking supply lines. The price of urea, a crucial raw material for fertilizer, has already risen by 40%. For farmers from Argentina to Bangladesh, this means an impossible choice: plant less or switch to crops that require fewer fertilizers, such as soybeans or biofuels. The UN Food and Agriculture Organization (FAO) warns of an “alarming level of food insecurity” if the conflict lasts longer than a month.
