About a third of the world\u2019s supply of fertilizer passes through the Strait of Hormuz, the key international waterway that has been essentially closed for months owing to the ongoing attacks and threats from both Iran and the U.S. against ships that try to sail through the passage. <\/p>\n<\/p>\n
The problem is not just shipping-related: Natural gas is a key input for the production of many nitrogen-based fertilizers such as urea and ammonia, and liquefied natural gas supplies have been massively disrupted not only by the closure of strait but also by strikes on gas fields in Qatar and Iran<\/a>. <\/p>\n \u201cThe most dangerous misconception is that energy and food are separate silos. In reality, they are a single, connected system. In the rice-farming heartlands of Cambodia, Myanmar, and Vietnam, energy is food,\u201d Nischal Dhungel, a fellow at the Nepal Institute for Policy Research, wrote last week<\/a>. \u201cDiesel powers the irrigation pumps and the tractors; natural gas is the primary feedstock for urea and ammonia fertilizers.\u201d <\/p>\n Open this photo in gallery:<\/a><\/p>\n A farmer casts urea on her mustard field in the northern Indian city of Allahabad in January, 2015.Jitendra Prakash\/Reuters<\/p>\n \t\t STEP 1: HABER-BOSCH PROCESS<\/p>\n The gases,<\/p>\n combined in a <\/p>\n 1 to 3 ratio, are<\/p>\n heated to 450\u00b0C and<\/p>\n pressurised to 200<\/p>\n atmospheres, where<\/p>\n they react with<\/p>\n aniron catalyst to<\/p>\n form ammonia<\/p>\n Unreacted gases are recycled<\/p>\n Cooled ammonia gas becomes liquid<\/p>\n Inside a reactor, ammonia and CO2 form ammonium carbamate<\/p>\n (NH2COONH4)<\/p>\n Ammonium carbamate is decomposed to produce urea and water<\/p>\n Note: Process has been greatly simplified for illustration purposes.<\/p>\n The water is evaporated and the urea is solidified, then granulated<\/p>\n THE GLOBE AND MAIL, SOURCE: NEW ZEALAND INSTITUTE OF CHEMISTRY; CHEMGUIDE; PUBCHEM<\/p>\n \t\t STEP 1: HABER-BOSCH PROCESS<\/p>\n The gases,<\/p>\n combined in a <\/p>\n 1 to 3 ratio, are<\/p>\n heated to 450\u00b0C and<\/p>\n pressurised to 200<\/p>\n atmospheres, where<\/p>\n they react with<\/p>\n aniron catalyst to<\/p>\n form ammonia<\/p>\n Unreacted gases are recycled<\/p>\n Cooled ammonia gas becomes liquid<\/p>\n Inside a reactor, ammonia and CO2 form ammonium carbamate<\/p>\n (NH2COONH4)<\/p>\n Ammonium carbamate is decomposed to produce urea and water<\/p>\n Note: Process has been greatly simplified for illustration purposes.<\/p>\n The water is evaporated and the urea is solidified, then granulated<\/p>\n THE GLOBE AND MAIL, SOURCE: NEW ZEALAND INSTITUTE OF CHEMISTRY; CHEMGUIDE; PUBCHEM<\/p>\n \t\t STEP 1: HABER-BOSCH PROCESS<\/p>\n The gases, combined in a 1 to 3 ratio, are heated to 450\u00b0C and pressurised to 200 atmospheres, where they react with an iron catalyst to form ammonia<\/p>\n Unreacted gases are recycled<\/p>\n Cooled ammonia gas becomes liquid<\/p>\n Inside a reactor, ammonia and carbon dioxide form ammonium carbamate<\/p>\n (NH2COONH4)<\/p>\n Ammonium carbamate is decomposed to produce urea and water<\/p>\n Note: Process has been greatly simplified for illustration purposes.<\/p>\n The water is evaporated and the urea is solidified, then granulated<\/p>\n THE GLOBE AND MAIL, SOURCE: NEW ZEALAND INSTITUTE OF CHEMISTRY; CHEMGUIDE; PUBCHEM<\/p>\n The problem was compounded for many Asian countries in March when China, the world\u2019s single-largest fertilizer producer, restricted exports of many products in order to protect its own agricultural sector. Fertilizer imports are down more than 50 per cent in Vietnam alone, according to customs data<\/a>, threatening rice supplies for much of Southeast Asia. <\/p>\n<\/p>\n Alex Holmes, regional director for Asia-Pacific at the Economist Intelligence Unit, said there \u201ccontinues to be a noticeable contrast between global food commodity prices and prices of fertilizers such as urea.\u201d <\/p>\n \u201cThe latter shows a vertical takeoff, but the former has only crept up,\u201d he said, warning that potential disruptions to growing cycles may not have been fully priced in yet. <\/p>\n One exception can be seen in the Philippines, with new inflation data released this week showing a sharp spike in food prices \u2212 6 per cent year-over-year. <\/p>\n The Southeast Asian country is heavily dependent on China for fertilizer and imports almost 75 per cent of its rice supplies from Vietnam and Thailand<\/a>, both of which are also grappling with shortages. <\/p>\n Open this photo in gallery:<\/a><\/p>\n Manila’s street vendors have had to increase their prices in recent months to deal with the higher costs of liquefied natural gas, and the downstream effects of fertilizer shortages in other Asian countries.Jam Sta Rosa\/AFP via Getty Images<\/p>\n In March<\/a>, the World Food Programme warned that an additional 9.1 million people \u201ccould be pushed into acute food insecurity\u201d across Asia as a result of food and fuel shortages caused by the Iran war, an increase of 24 per cent. <\/p>\n Opening the Strait of Hormuz could still help avoid a major supply issue, said Maximo Torero, chief economist at the UN Food and Agriculture Organization, but \u201cif we don\u2019t reopen this in the next two to three weeks, the situation is going to get pretty serious.\u201d <\/p>\n The situation could be even worse if a potential \u201csuper El Ni\u00f1o\u201d emerges in the coming weeks<\/a>. The natural climate phenomenon<\/a>, which can last as long as a year, is characterized by a warming of ocean surface temperatures in parts of the Pacific and has been linked<\/a> to crop failures, wildfires, droughts and floods. <\/p>\n With files from Reuters<\/p>\n Food for thought: More from The Globe and MailThe Decibel podcast<\/p>\n Persian Gulf oil supplies many of the world\u2019s farmers with nitrogen, but Saskatchewan potash provides another vital nutrient for crops. Agricultural and food policy reporter Kate Helmore spoke with The Decibel<\/a> about Canada\u2019s \u201cpink gold\u201d and an Australian company\u2019s plan<\/a> to develop it. Subscribe for more episodes.<\/a><\/p>\n Commentary<\/p>\n Eric Reguly: Global food crisis? 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