Alvaro Lario, president of the United Nations Fund for International Agricultural Development, said on the 15th that the impact of the blockage of shipping in the Strait of Hormuz on global agricultural production is becoming more and more prominent, and may lead to a reduction in crop production, further driving up food prices. In an interview with Reuters, Lario said that the chain impact of the blockade on the Strait of Hormuz is showing. Factors such as the blockade of fertilizer transportation, rising fuel and transportation costs, and the El Niño phenomenon are driving up the costs of all aspects of the food supply chain. Lario said that although countries and regions relied on existing fertilizer and fuel stocks to mitigate the impact to a certain extent, the long-term uncertainty brought about by the prolonged conflict may force farmers to adjust their planting structure, abandon crops with high returns but a long return cycle, and instead grow crops that can earn income faster. Furthermore, the reduction in the use of chemical fertilizers by farmers may reduce food production. Lario said that global agricultural product prices rose 13% in the third quarter of this year, and are expected to rise further in the fourth quarter of this year and the first quarter of next year. Countries that rely on imported fertilizers, fuels and food are more vulnerable to shocks.

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