FAO: Continued obstruction of the Strait of Hormuz may lead to a global food price crisis

Xinhua News Agency, Beijing, May 21 — The United Nations Food and Agriculture Organization warned on the 20th that if shipping in the Strait of Hormuz continues to be blocked and governments fail to take timely action, the world may face a severe food price crisis in the next 6 to 12 months.
The Food and Agriculture Organization of the United Nations (FAO) stated that the disruption of shipping in the Strait of Hormuz is no longer a short-term impact, but may evolve into a systemic risk that impacts global food prices. Currently, decisions made by governments and farmers around the world regarding fertilizer use, food imports, agricultural financing, and crop planting choices will affect the trend of global food prices from later this year to early 2027.
According to data from the Food and Agriculture Organization (FAO), the FAO Food Price Index rose for the third consecutive month in April this year, influenced by rising energy costs and disruptions to supply chains caused by the war in the Middle East. The organization believes that the impact of the crisis will spread in stages: first hitting the energy market, then affecting fertilizer and seed supply, and agricultural production, which in turn will push up commodity prices and ultimately transmit food inflationary pressure to consumers.
Among them, the risks faced by some poorer countries in Asia, Africa, and Latin America are particularly prominent. These countries have long relied on importing nitrogen fertilizer from the Middle East, where the local population already bears significant pressure from food expenses.
The Food and Agriculture Organization (FAO) urges all countries to take prompt countermeasures, including exploring alternative trade routes that bypass the Strait of Hormuz, refraining from implementing policies that restrict food exports, and ensuring that humanitarian food deliveries are not affected by trade restrictions.
According to a report by the US-based Politico, Maximo Torero, Chief Economist of the Food and Agriculture Organization (FAO), stated in a podcast broadcast on the 20th that countries need to enhance their ability to cope with supply chain shocks and economic resilience to minimize potential impacts. (Li Yue)