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🇮🇱 Israel /Culture & Society

Iran War Disrupts Asian Agriculture, Threatens Global Food Supply

From Jerusalem Post · (4m ago) English Critical tone

Translated from English, summarized and contextualized by DistantNews.

TLDR

  • The war involving Iran has significantly increased fuel and fertilizer costs across Asia, impacting farmers during crucial planting seasons.
  • Farmers, particularly in Thailand, are reducing planting or leaving land unplanted due to rising production costs exceeding expected sales revenue.
  • Global urea fertilizer supply is disrupted, leading to sharp price increases and concerns about potential yield losses and higher commodity prices worldwide.

The ongoing conflict involving Iran is sending shockwaves through agricultural markets in Asia, with devastating consequences for farmers already struggling with tight margins. The Jerusalem Post highlights how disruptions in the Persian Gulf and the Strait of Hormuz have choked off vital supplies of fuel and, critically, urea fertilizer. This is hitting farmers precisely as they enter key sowing periods for staples like rice.

planting and harvesting would cost roughly $33,000, while the crop would be expected to sell for about $22,000.

— Thai rice farmerIllustrates the financial strain on farmers due to increased production costs and decreased expected revenue.

In Thailand, a major rice exporter, farmers are facing an impossible choice: plant and risk selling at a loss, or leave fields fallow. One farmer's stark calculation reveals production costs far exceeding projected revenue, a situation exacerbated by the skyrocketing price of urea. The global shortage of this essential fertilizer, with a significant portion of supply effectively removed from the market, is a central concern.

A large share of global urea supply has effectively been removed from the market, while spot-market prices have risen sharply since February

— The Washington PostExplains the critical shortage and price surge of urea fertilizer impacting global agriculture.

The ripple effects are being felt across the region, including the Philippines, Bangladesh, and Australia. As India and Brazil, major agricultural powerhouses, prepare to increase their fertilizer demand, the UN warns of potential yield losses and escalating commodity prices globally. While the Thai government claims sufficient reserves, local reports from fertilizer shops tell a different story, with urea out of stock for weeks and alternative supplies facing long shipping delays.

Without timely shipments, countries could face yield losses and higher commodity prices

— UN Food and Agriculture Organization officialsWarns about the broader global implications of fertilizer supply disruptions.

Adding to the farmers' woes, export demand has weakened. Shipments to the Middle East, a key market for Thai rice, have stalled since the conflict began, creating a domestic glut and depressing prices. Many Thai farmers, already burdened by loans, now face the prospect of deeper debt as input costs soar and crop revenues plummet. This is not just an economic issue; it's a threat to food security and the livelihoods of millions across Asia.

Fertilizer shops in central Thailand, however, said they had been out of urea for weeks, while efforts to secure alternative supplies from Russia were expected to face long shipping delays

— The Washington PostHighlights the local scarcity of urea in Thailand despite government assurances.
DistantNews Editorial

Originally published by Jerusalem Post in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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