Rising Costs Strain Global Food Supply Chains

(MENAFN) Global food and agricultural value chains are under considerable stress due to escalating energy and logistics expenses driven by the Iran-US-Israel conflict, affecting every stage "from production to delivery," according to the head of the International Association of Operative Millers (IAOM) Eurasia on Tuesday.

Eren Günhan Ulusoy emphasized in a press release that the main challenge lies not merely in energy prices, but in "a transport chain that has become more expensive, slower, and increasingly uncertain."

These ongoing disruptions are expected to influence expenses in the short term, impact pricing in the medium term, and alter overall competitiveness in the long term, Ulusoy explained.

The Strait of Hormuz, which has been mostly inaccessible since hostilities began on February 28, serves as a critical passage for energy and fertilizer shipments.

Ulusoy highlighted that surging diesel and fertilizer prices will play a crucial role in shaping new season crops in the Northern Hemisphere, especially corn and other grains. He pointed out that high diesel costs raise expenses before farmers even start working in the fields, while expensive fertilizer either forces reduced application—potentially harming yield and quality—or drives up production costs.

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