Hormuz shipping disruption is starting to hit harvests, UN agency says

BANGKOK:  The impact of ⁠the disruption to shipping through the Strait of Hormuz is already ​becoming visible in agricultural harvests, ​threatening to lower farm yields and push up food prices, the head of a United Nations rural development agency said on Thursday.
* 'The pass-through from the initial locking down of the Strait of Hormuz ... is now starting to be seen,' International Fund for ⁠Agricultural Development President Alvaro Lario told Reuters
* Hormuz-related disruptions to ⁠fertilizer shipments and higher fuel and transport costs, compounded by El Niño and disruptions to Black Sea wheat supplies, are adding costs throughout the food supply chain, he ‌said
* Iran has sought to tighten ​its grip on ⁠the Strait of Hormuz, using the chokepoint to pressure ​Washington, which has been pressing its ‌own naval blockade of Iranian ports
* Existing fertilizer and fuel stocks initially cushioned the shock, ​but prolonged uncertainty has led to more cautious planting and reduced fertilizer use, Lario said, adding that higher fuel costs are also affecting mechanized harvesting
* Agricultural commodity prices rose 13% in the third quarter, with further increases expected ‌in the fourth quarter of this year and the first quarter ​of next year, he said
* Countries reliant on imported fertilizer, fuel ​and ‌food are ⁠particularly vulnerable, according to Lario, who highlighted Southeast Asia's fuel dependence as well as the Gulf region's reliance on food imports
* A ​failure by the United States and Iran to ⁠agree within weeks on ​a UN-backed plan for moving fertilizer through the Strait of Hormuz could cause a food security crisis in parts of Asia and Africa, an official overseeing the proposed scheme told Reuters on Wednesday
* ​The ongoing uncertainty could push small farmers away from higher-value ​crops that take longer to generate income and towards crops providing faster cash flow, Lario said