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2026-04-05 13:50:07
[FAO Warns: Middle East Conflict Pushes Up Agricultural Production Costs, Food Price Pressures Are Transmitted Along the Supply Chain] ⑴ Maximo Torero Cullen, Chief Economist of the Food and Agriculture Organization of the United Nations (FAO), stated in an interview with a reporter from China Central Television (CCTV) that the impact of the Middle East conflict on the food market will not be immediately reflected in food supply, but may be gradually transmitted through agricultural production costs, and will have an impact on the global food market in the future. ⑵ A report released by the FAO on March 3 shows that, affected by rising energy prices, the global food price index rose by 1.0% year-on-year in March 2026, marking the second consecutive month of increase. ⑶ The report points out that the current global food supply is generally sufficient, limiting the rate of increase, but if energy costs remain high, it will still put upward pressure on food prices, and the linkage between energy and food is strengthening. ⑷ The report also points out that the Middle East, as an important channel for energy and fertilizer raw materials, will see its agricultural production costs increased if supplies are disrupted or transportation costs rise, putting pressure on the entire chain from planting to transportation. (5) The FAO's assessment reveals a clear transmission path: the closure of the Strait of Hormuz drives up energy prices, energy prices drive up fertilizer and transportation costs, and ultimately these costs are passed on to global consumers in the form of higher food prices.
