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Fertilizer Diesel and El Niño Impact Food Prices
The United Nations Food and Agriculture Organization (FAO) anticipates that a new wave of global food price inflation will begin by the end of 2026, driven by the impacts of the wars in Iran and Ukraine, as well as the El Niño phenomenon. Disruptions in shipping, rising oil and fertilizer prices, and weather fluctuations are increasing agricultural production costs, affecting essential commodities such as wheat, corn, and rice. Significant food price hikes are expected in 2027, with growing pressures on food security—especially in importing countries—due to declining crop yields and rising operational costs linked to climate change and international conflicts.
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