Analysts warn that agricultural companies, facing 20-30% higher production costs due to energy disruption and weather conditions like El Nino, may cut corners on sustainable land-clearing by using fire instead of machinery, potentially worsening the haze problem.
Asia’s next food crisis is under way. After the US-Israeli strikes on Iran, shipping through the Strait of Hormuz collapsed, sending shock waves across energy, fertiliser and food systems. Fuel, freight and fertiliser costs are rising sharply, amplified by skyrocketing insurance premiums – feeding directly into the price of every tonne of fertiliser that still reaches the market. The scale of disruption reflects the strait’s outsize role in global trade. It carries around one-third of globally...
The EU has unveiled emergency measures subsidising up to 70% of extra fuel and fertiliser costs for farmers, fishing businesses and road hauliers impacted by the Iran war. Individual companies can claim up to €50,000 each until year-end with minimal paperwork under the Middle East crisis temporary state aid framework (METSAF). Energy-intensive industries can claim 70% of additional electricity costs. The scheme covers agriculture, fisheries and transport sectors but excludes airlines. Concerns about fossil fuel demand versus renewable transition targets were defended by Teresa Ribera, who said immediate crisis response is necessary while pursuing long-term clean energy goals.
Analyst warns that a super El Niño phenomenon is threatening the planting season across South and Southeast Asia, bringing widespread dryness to the region. The climatic conditions are already being felt in Kerala, India, where farmers typically prepare land during the pre-monsoon season from March to May.
Over 3,300 Iranians, including 383 children, have been killed since the US and Israel launched military operations. The conflict's economic toll is escalating rapidly, with US military costs exceeding $11.3bn in just six days and total US costs potentially reaching $1tn when long-term factors are included. Global impacts are severe: US households face $410 in additional costs, UK households £480 annually, and Arab economies could contract by $120-194bn after one month. The IMF warns of potential global recession, while 45 million more people could face acute food insecurity, primarily in Asia and Africa.
