Fertiliser shortages will have ‘dramatic’ effect on global food prices, warns farming boss
Summary
Fertiliser shortages caused by the Iran war and the closure of the Strait of Hormuz have increased costs for UK farmers by up to 70%. This issue may lead to higher global food prices next year, as fertiliser is essential for crop production.Key Facts
- Fertiliser prices have risen between 50% and 70% since the Iran war began in February.
- The closure of the Strait of Hormuz has limited global fertiliser supplies because many shipments pass through this route.
- UK farmers mostly used fertiliser this year, so immediate effects are limited, but next year's crops may be at risk.
- The Grosvenor Group, a major UK farming and property company, says the shortage will cause significant food price increases worldwide.
- Natural gas, needed to produce nitrogen-based fertilisers like urea, is also restricted due to the strait’s closure.
- Alternative sources of fertiliser nitrogen are limited, making the supply issue critical.
- The Grosvenor Group profits decreased by 18% last year, partly due to North American operations, but its UK property business remains strong.
- Rising food prices are causing concern among British consumers, with 80% worried about grocery costs.
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