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World's Food Supply Imperiled by Iran War, Fertilizer Manufacturer Fertiglobe Chief Says — Interview
World's Food Supply Imperiled by Iran War, Fertilizer Manufacturer Fertiglobe Chief Says — Interview
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(11:56 GMT) *Fertiglobe CEO: Not Enough Being Done to Avert a Global Food Crisis (11:56 GMT) *Strait of Hormuz Closure Threatens Fertilizer Usage, Particularly in Poor Countries, CEO Says (11:56 GMT) *Farmers Need Financial Support to Pay for Fertilizer, CEO Says (11:56 GMT) World's Food Supply Imperiled by Iran War, Fertilizer Manufacturer Fertiglobe Chief Says — InterviewBy Adam WhittakerConflict in the Middle East is threatening to spike grain prices and exacerbate hunger among the world's poor, the chief executive of fertilizer manufacturer Fertiglobe says.Global governments need to step up efforts to get fertilizer moving through the Persian Gulf and offer financial support for farmers to help offset the jump in prices, Ahmed El-Hoshy said in an interview.Fertiglobe, majority owned by Abu Dhabi state oil company Adnoc, uses natural gas to produce fertilizers. The prices for ammonia and urea fertilizers have jumped since the conflict began, when supply from the Middle East fell and the energy supply shock sent gas prices soaring. Nitrogen fertilizers-like ammonia and urea-are particularly important for boosting yields of crops like corn, wheat and rice.With the Strait effectively closed, Fertiglobe has been trucking some of its product from the strait by road to other regional ports, but not enough to fully offset the hit to supply. Some 30% of urea exports aren't leaving the region, El-Hoshy said. Gas prices have also risen after facilities in the Middle East were hit, pushing costs up for producers globally.Fertiglobe has continued to produce fertilizer at a facility in Abu Dhabi and has been storing it at different locations. It also has significant production facilities away from the strait that continue to operate.Failure to get fertilizer supplies moving or provide financial support risks worsening food shortages and triggering higher grain prices that could take time to come down, El-Hoshy said.Overall, there is optimism that a peace agreement between the U.S. and Iran is close to being completed. President Trump and Iranian state media have both said in recent days that the strait could open up as soon as an agreement is signed.The prospect of the waterway reopening was enough to send Brent crude futures below $90 a barrel Friday, but investors remain wary. Previous talks have stalled despite Trump saying a deal was imminent.Fertilizers are re...