The CEO of Yara, the world's largest fertiliser producer, warned that disruptions tied to the Iran conflict threaten global food security and could slash crop yields worldwide. Fertiliser shortages will drive up agricultural input costs, pushing food prices higher for consumers.
The conflict has disrupted supply chains for fertiliser materials, particularly those sourced from or transited through the Middle East. Yara depends on these supply routes for key production inputs. The company expects the shortage to persist, affecting farmers across multiple continents who rely on imported fertilisers for their harvests.
Lower crop yields combined with higher fertiliser costs create a squeeze on agricultural production. The impact extends beyond farmers to global food systems already strained by prior supply shocks. Regions dependent on imported fertiliser face the most acute risk of reduced food availability and elevated prices.
Yara's warning reflects broader concerns about how regional conflicts cascade through commodity markets and agricultural supply chains. The company has not detailed specific mitigation measures but the statement signals that current geopolitical tensions carry direct consequences for food production capacity.