Tehran [Iran], March 26: Global food and agriculture value chains are under pressure from rising energy and logistics costs fueled by the U.S.-Israel-Iran conflict, affecting everything from production to delivery, according to the head of the International Association of Operative Millers (IAOM) Eurasia Eren Günhan Ulusoy.
The primary issue is a transport chain that has become more expensive, slower and increasingly uncertain, rather than just energy prices, Ulusoy said in a press release earlier this week.
These developments will impact costs in the short term, pricing in the medium term, and overall competitiveness in the long term, according to Ulusoy.
The Strait of Hormuz, which has been largely closed since the war began on Feb. 28, is a key route for energy and fertilizer sources.
He noted that rising diesel and fertilizer costs will be decisive for new season crops in the Northern Hemisphere, particularly for corn and other grains.
High diesel prices increase costs before farmers even enter the field, while expensive fertilizer leads to either lower usage, threatening yield and quality, or higher production costs, he stressed.
Fertilizer supply risks are growing due to both energy costs and restrictive trade policies and quotas seen globally, Ulusoy highlighted.
However, he indicated that Türkiye has maintained its position as the world flour export champion for 10 years, accounting for 23% of global trade despite producing 15 million tons against a total capacity of 32 million tons.
Ulusoy said Türkiye's strong production culture, advanced industrial infrastructure and rapid delivery capabilities provide a significant competitive advantage in reaching broad geographies.
The Ministry of Agriculture and Forestry and the Turkish Grain Board (TMO) play a vital regulatory role in managing the domestic grain market, he emphasized.
TMO acts as a strategic mechanism to ensure market stability by setting reference purchase prices that protect producer income during volatile periods.
Source: Qatar Tribune
