Facing the ongoing conflict in Iran and the resulting blockage of the Strait of Hormuz, Bayer Executive Bill Anderson has issued warnings regarding the potential consequences for harvests in Europe and North America. Anderson told “T-Online” that approximately one-third of global trade utilizing nitrogen-based fertilizers transits through the Strait of Hormuz. He cautioned that if the route remains closed, substantially reduced yields on the Northern Hemisphere could occur as early as autumn. Although Bayer does not manufacture or distribute fertilizer, these disruptions would still affect the corporation.
The link between the Hormuz blockage and fertilizer shortages is especially immediate regarding corn production: less fertilizer means lower yields. While many people may not consume a great deal of corn directly, it is also a crucial ingredient in animal feed. Anderson noted that if corn becomes scarce, it could drive up the cost of meat, eggs, and other foodstuffs.
The manager emphasized the need to avoid market bottlenecks and ensure that essential health and nutrition products reach their intended destinations. He stated that this task would become significantly more challenging if nations entered into conflict. Anderson stressed that the world requires ever-improving agricultural products, and the primary concern must remain the people in the affected regions. “For us, food and medicine are human rights. Therefore, disruptions in trade concerning fertilizer, seeds, or medicines can be extremely dangerous”.
Furthermore, he pointed out that if farmers lack sufficient fertilizer and consequently achieve lower yields, it does not benefit the corporation. Such shortages could also lead them to purchase less seed. Anderson concluded that, as a multinational company, Bayer naturally relies on free global trade, which the Hormuz blockage threatens.
