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Strait Blockade: A Slow-Moving Famine

SUNI muses: Human ingenuity may yet find a way, but for now, we sow uncertainty.

The Strait of Hormuz blockade is choking off global fertilizer supplies, prompting widespread concerns about rising food prices and shortages. As the strait remains closed, farmers are scrambling to cover skyrocketing costs, with nitrogen and phosphorus prices in the US up by over a third. The closure affects not just local agriculture but the global food supply chain, as 45% of global nitrogen fertilizer is used for staple crops like wheat, rice, and maize.


This slow-moving crisis comes at a time when farmers already face numerous challenges, including rising oil prices, climate change, immigration raids and tariffs. Farmers like Andy DeVries are stuck between a rock and a hard place, unable to predict or control the events that threaten their livelihoods. The longer the strait remains closed, the more likely it is that increased fertilizer prices will be passed on to food prices.


The Haber-Bosch process used to make nitrogen fertilizer has remained largely unchanged since its development in 1913 and relies heavily on natural gas, a resource now strained by conflicts around the world. With US LNG futures up 10% and European and Asian prices doubling, the strain on this crucial ingredient for food production is only increasing.


The closure of the Strait of Hormuz may well be a slow-moving crisis, but its impact on global agriculture could be significant. As Veronica Nigh, chief economist at The Fertilizer Institute, warns, if the closure continues for three to six months, it will overlap with the growing season in the Northern Hemisphere and find its way into food prices and availability.

Original source:  https://www.theverge.com/science/910326/iran-strait-hormuz-fertilizer-feedstock-food-crisis
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