Hormuz Closure Risks Shock to Global Food Prices

The closure of the Strait of Hormuz is no longer merely a temporary disruption to transport, but the start of a systemic shock to global food prices, according to the Food and Agriculture Organization (FAO).

The UN agency warned that without swift action by governments, the world could face a serious food crisis within six to 12 months.

The FAO said decisions by farmers and states on fertilizer use, imports, financing and crop selection would determine whether food prices rise sharply later this year or in early 2027.

FAO Chief Economist Maximo Torero urged countries to make their food systems more resilient to supply disruptions. The impact is already visible, with the FAO Food Price Index rising for the third month in a row in April because of higher energy prices and the conflict in the Middle East.

Poorer countries in Asia, Africa and Latin America are most at risk, as they buy most of their nitrogen fertilizer from the Middle East.

The European Commission has presented a fertilizer plan based mainly on long-term solutions, such as recycling manure and agricultural waste. It does not include rapid measures that could lower fertilizer prices for European farmers, such as suspending tariffs on imports of Russian and Belarusian fertilizers.

(politico, bak)