UN experts warn that the conflict in the Middle East is creating widespread waves of impact, from the fertilizer industry to food prices, in the context that many countries in the Northern Hemisphere, including China, are entering the spring crop season.
If the conflict lasts for more than 3 months, the impact will become "significantly more serious", affecting input costs in agriculture and disrupting the next crop, leading to long-term consequences. Chief Economist of the Food and Agriculture Organization of the United Nations (FAO) - Mr. Maximo Torero - said.
That's why it's important not to let the situation continue to escalate for a long time," he said. "We need to find alternative routes and, although they are not equivalent, at least create a certain gap, so that prices don't rise faster.
FAO said that the conflict has disrupted the supply chain of essential inputs for agriculture, especially fertilizers, a sector heavily dependent on energy and international transportation.
This organization emphasized that the disruption of supply from the Gulf region - which accounts for a significant proportion of global fertilizer exports - is pushing up agricultural production costs. This is happening at the same time as fertilizer demand increases sharply as countries enter the sowing season.
Increased transportation and energy costs due to conflicts may also spread to food prices in the coming months. If the disruption lasts, the impact will not only be limited to one crop but will also affect subsequent production cycles.
Experts also warn that disruptions to important shipping routes, including strategic shipping routes, could increase transportation costs, thereby increasing price pressure on farmers and consumers globally.
FAO believes that countries dependent on food and fertilizer imports will be most heavily affected, especially developing economies, where the ability to cope with price fluctuations is still limited.
This organization calls on the international community to closely monitor the developments of conflicts and proactively seek alternative solutions in trade and transportation, in order to minimize the risk of broken global food supply chains.
