UAE's Fertiglobe Warns of Global Food Supply Crisis Amid Transport Challenges
UAE fertiliser giant warns of global food impact as it turns to trucks to bypass Hormuz
Channel Newsasia
Image: Channel Newsasia
Fertiglobe, a major UAE fertiliser producer, is resorting to trucking fertiliser to bypass the Strait of Hormuz, which has been disrupted due to ongoing conflicts. This workaround, while necessary, is costly and complex, raising concerns about global food supply as fertiliser prices soar and production slows.
- 01Fertiglobe is using trucks to transport fertiliser due to disruptions in the Strait of Hormuz.
- 02The company has reported a 173% increase in profits due to rising fertiliser prices.
- 03Global food supply is at risk, with the World Food Programme warning of increased food insecurity.
- 04Fertiglobe supplies fertiliser to over 45 countries, including major markets like India and Australia.
- 05If disruptions continue, crop yields may decline, impacting food availability and prices.
Advertisement
In-Article Ad
Fertiglobe, one of the world's largest fertiliser producers based in the United Arab Emirates, is adapting to ongoing disruptions in the Strait of Hormuz by using trucks to transport fertiliser to ports, a move described by CEO Ahmed El-Hoshy as an “extraordinary workaround.” This shift involves transporting 20 to 25 tonnes of fertiliser per truck, compared to the 30,000 to 50,000 tonnes typically shipped by vessel, making operations more complex and costly. Despite these challenges, Fertiglobe has managed to fulfill most customer orders across 45 countries, including significant markets in India, Bangladesh, and Australia. The company has reported a staggering 173% increase in first-quarter profits, driven by soaring fertiliser prices attributed to the regional conflict. However, El-Hoshy warns of a looming fertiliser crisis that could have dire implications for global food production, as many farmers are already shifting away from fertiliser-intensive crops like corn and wheat. The World Food Programme has indicated that prolonged disruptions could push an additional 45 million people into acute food insecurity this year. With critical planting seasons approaching, the situation remains precarious, and any further delays in fertiliser delivery could exacerbate food shortages worldwide.
Advertisement
In-Article Ad
The shift in fertiliser transport could lead to reduced agricultural output, affecting food prices and availability globally.
Advertisement
In-Article Ad
Reader Poll
How concerned are you about the global food supply crisis?
Connecting to poll...
Read the original article
Visit the source for the complete story.

