How The War In Iran Is Affecting The Swiss Food Industry

(MENAFN- Swissinfo) From chocolate sales at airports to fertiliser trade bottlenecks – the Swiss food and commodity industry is already feeling the impact of the war in the Middle East. Consumers will be next. Select your language

Generated with artificial intelligence. Listening: How the war in Iran is affecting the Swiss food industry This content was published on April 9, 2026 - 09:00 8 minutes

I cover food and agribusiness and have a special interest in sustainable supply chains, food safety and quality, as well emerging players and trends in the food industry. A background in forestry and conservation biology led me down the path of environmental advocacy. Journalism and Switzerland made me a neutral observer who holds companies accountable for their actions.

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The conflict in the Persian Gulf and the subsequent blockade of the Strait of Hormuz by Iran has disrupted the flow of essential goods and hiked energy prices. Switzerland, as a hub for large food multinationals and the global commodity trading industry, is feeling the pinch. Here are four under-the-radar sectors that are particularly vulnerable to disruption:

Fertiliser trade

Fertilisers are one of the most traded commodities, with 169 million tonnes crossing borders in 2024. About half of all fertiliser is used to grow cereals like rice, wheat and maize. However, this trade has been affected by export restrictions imposed since 2021 by China, the world's largest producer of nitrogen and phosphate fertiliser, sanctions on major potash exporters Russia and Belarus, and a 10% tariff on fertiliser imports imposed by the Trump administration.

The conflict in the Middle East has made the situation worse for Swiss commodity traders. According to the UN Food and Agriculture Organisation (FAO), 20%-30% of the world's fertiliser passes through the Strait of Hormuz. The price of urea went up as much as 60% after the conflict started. There is worse to come: the Gulf region produces 25% of the world's sulphur and accounts for half of all sulphur exports used to manufacture fertiliser like DAP.

The price of wheat has increased by 6% in the US and the price of rice has gone up by 9% in Thailand. The FAO expects global household welfare to drop from 2.1% to 1.6%, with Asia and Africa most affected.

“About 35% of world urea and 25% of ammonia comes from the Gulf region. It is not possible to switch sources from one day to another,” Florence Schurch, secretary general of the Swiss commodity trading association SUISSENÉGOCE told Swissinfo.

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