CEO of Yara International Warns: 10 Billion Meals at Risk and the Poor Will Pay the Highest Price for the Hormuz Blockade
Strait of Hormuz: The Beating Heart of Global Agriculture
Holsether clarified in his interview that the Strait of Hormuz is not just a passage for oil and gas, but a vital corridor for transporting ammonia and urea and essential agricultural products. He pointed out that:
- One third of global urea production and about 25% of global ammonia trade come from the Gulf region.
- The continuation of the blockade could lead to the immediate withdrawal of more than half a million tons of urea from the global supply chain, resulting in a severe shortage of plant nutrients.
A "Global Auction" on Food and the Victims are the Poor
The CEO of "Yara" warned that the decline in crop production will create a state of "global auction" for the remaining fertilizers, where wealthy countries (like Europe) will be able to purchase, while the poorest countries in Africa and Asia will be unable to compete. Holsether emphasized that the impact will extend for a long time, explaining that "even if the blockade is lifted today, the halt in production and the shortage of raw materials will disrupt agricultural seasons for several months".
Price Shock and Production Halt
Since the closure of the strait on February 28, global nitrogen fertilizer prices have surged by over 70%. Holsether believes that the rise in natural gas prices (the raw material for fertilizers) has already led to the shutdown of production plants in various regions, making securing "food security" a nearly impossible task under the current conditions for 2026.
A Message to the International Community
Holsether concluded his remarks by stressing that "fertilizers are not just a commercial commodity, but food for people", urging world leaders to take urgent action to open waterways and spare the world from famine resulting from "disruption of chemical supply chains". These statements coincide with the French Foreign Ministry's call today, Friday, to immediately and unconditionally open the strait to protect global food security.
