Disruptions in the Strait of Hormuz could cause a global food crisis

Brief retelling from RIA II

Disruptions in shipping through the Strait of Hormuz could lead to a global food crisis due to reduced supplies of fertilizers.

About a third of the world's fertilizer supplies pass through the Strait of Hormuz, and the disruption to shipping has reduced available production and supply capacity by nearly 40%.

Cereal prices could rise by up to 80%, and developing economies that rely heavily on imports will be especially vulnerable.

MOSCOW, October 5 - RIA Novosti. Disruptions in shipping through the Strait of Hormuz could escalate from an energy crisis into a global food crisis due to reduced supplies of fertilizers, the Wall Street Journal writes, citing a statement by John Denton, Secretary General of the International Chamber of Commerce (ICC).

“The disruption of a vital shipping route in the Middle East has led to an energy shock. Now a global food security crisis is brewing,” the publication notes.

About a third of the world's fertilizer supplies pass through the Strait of Hormuz, the newspaper clarifies. According to Denton, after the disruption of shipping, available production and supply capacity was reduced by almost 40%, and the global market lost about 2.7 million tons of fertilizers.

According to the Secretary-General's forecasts, if there is no progress in unblocking the strait, grain prices could rise by up to 80%. It is noted that developing economies that are heavily dependent on imports will be especially vulnerable. For example, the Philippines purchases about 90% of its fertilizer needs abroad.

The situation is further worsened by the effects of the El Niño phenomenon, which could reduce crop yields and increase consumer inflation, writes WSJ. El Niño is a natural phenomenon in which water temperatures in the equatorial Pacific Ocean rise to abnormal values. Such warming changes the interaction between the ocean and the atmosphere and could trigger a chain of climate shifts across the planet.