Global energy and geopolitical conflicts threaten food security

Geopolitical conflicts, including the wars in Ukraine and the Middle East, are creating a multidirectional squeeze on global agriculture by disrupting energy and fertilizer supply chains. An S&P Global Institute report warns that the energy crisis is evolving into a global food security crisis, as rising diesel costs impact farming and land may be diverted from food to biofuel feedstock.

The closure of the Strait of Hormuz to most shipping traffic has significantly impacted the supply of critical fertilizer components such as urea, ammonia, and natural gas. Since half of the world's fertilizer feedstock exports passed through this route, prices have surged, doubling in some instances. Experts warn that compromised fertilizer supply chains put half of the world's calories at risk.

In Bolivia, energy experts note that these international conflicts are exacerbating domestic economic pressures. The rising cost of fuels is impacting transportation, industrial production, and agricultural inputs, ultimately driving up the prices of essential goods and affecting the most vulnerable populations.