"Donald Trump's war on Iran could cause UK food prices to surge due to the soaring cost of fuel and fertiliser as the Strait of Hormuz the narrow sea passage south of Iran remains effectively impassable. The blockade on fossil fuels through the strait is driving a spike in the cost of nitrogen and phosphate fertilisers used for growing cereals and vegetables."
"Over the past month, the price of urea a nitrogen fertiliser has risen by 33.7 per cent, and is up 54.9 per cent compared to the same time last year. Meanwhile, a number of fertiliser plants in the Middle East have closed because of their inability to obtain the substances required to manufacture it."
"Natural gas accounts for between 60-80 per cent of the costs associated with the production of nitrogen fertilisers, according to the NFU. Cost of fertiliser is up 55 per cent year on year, largely due to Trump's war on Iran."
Tensions in Iran are disrupting global supply chains and driving significant increases in UK food prices. The blockade on fossil fuels through the Strait of Hormuz has caused fertilizer costs to spike dramatically, with urea prices rising 33.7 percent in one month and 54.9 percent year-over-year. Farms face dual pressures from higher fuel costs for machinery and increased fertilizer expenses. Middle Eastern fertilizer plants have closed due to inability to obtain production materials. Natural gas comprises 60-80 percent of nitrogen fertilizer production costs. These rising input costs force farmers to increase food prices for consumers.
Read at www.independent.co.uk
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