Global supply chains face energy and food security risks

Global supply chains are facing significant pressure due to geopolitical risks in the Middle East, the Russia-Ukraine war, and disruptions in the Strait of Hormuz. These factors are impacting critical sectors including energy, food, and logistics, specifically affecting agricultural inputs like fertilizer and freight costs.

In response, Türkiye is pursuing an active agricultural diplomacy strategy to prevent supply chain interruptions. Minister of Agriculture and Forestry İbrahim Yumaklı has engaged in bilateral talks with Russia, China, and Turkic Republics. Recent discussions with Russia focused on fertilizer, citrus, and tomato trade, resulting in an agreement that there will be no restrictions on fertilizer shipments to Türkiye this year. Further meetings regarding fertilizer are scheduled for October 25.

Simultaneously, a report from the McKinsey Global Institute highlights the severity of energy disruptions in the Strait of Hormuz. At the peak of the disruption, 14% of the global oil and gas supply was affected, a figure twice as high as the impact of the 1970s oil shocks. While 91% of the affected energy supply was oil, the global system mitigated some impact through alternative pipelines in Saudi Arabia and the UAE, as well as increased production and existing oil stocks.