The Next Crisis After Oil: Fertilizer And Food

Fertilizer is a critical input for farmers and global agricultural production. Roughly one-third of the world’s fertilizer seaborne supply moves through the Strait of Hormuz, with the Gulf region serving as a major export hub. From January to the end of March, fertilizer prices have already risen by more than 30%. A prolonged disruption in the strait could have severe consequences. Higher prices and tighter supply would squeeze farmers’ margins, potentially reduce crop yields and quality, and ultimately drive up food prices for consumers worldwide.

Source: YCharts, The Business Week Graphic

This graph was produced by Lucas Juery, CFA, CFPⓇ and is not intended to provide financial advice.