War in Iran: pressure on Swiss food industry
From fertilizers to glass, the conflict in the Persian Gulf hits key sectors. Here are the effects in Switzerland and future prospects.
Contesto
In brief - Middle East conflict blocks Strait of Hormuz - Fertilizer prices +60%, wheat +6%, rice +9% - Vetropack: rising energy and transport costs ## Key facts - What: Blockade of the Strait of Hormuz - When: From April 2026 - Where: Persian Gulf - Who: FAO, Suissenégoce, Keytrade - Amount: +60% urea price, +6% US wheat, +9% Thai rice The conflict in the Persian Gulf and the subsequent blockade of the Strait of Hormuz have slowed down the trade of some essential goods and pushed up energy prices. Switzerland, home to large multinational food companies and important global commodity traders, is beginning to feel the effects. Among the most affected sectors are fertilizer trading and glass bottle production. ### Fertilizers: rising prices and supply at risk Fertilizers are among the most traded commodities in the world: in 2024, international trade in these products reached 169 million tonnes. About half of global production is used in the cultivation of cereals such as rice, wheat, and corn. The sector had been under pressure for years: first due to the export restrictions imposed by China since 2021, the world's largest producer of nitrogen and phosphate fertilizers; then due to sanctions against Russia and Belarus, important exporters of potash; and finally due to the 10% tariff on imports introduced in the United States by the Trump administration. Now the conflict in the Middle East has further aggravated the situation for Swiss commodity traders. According to the United Nations Food and Agriculture Organization (FAO), between 20% and 30% of the world's fertilizers pass through the Strait of Hormuz. Since the start of the conflict, the price of urea has increased by 60%. And the situation could get worse: the Gulf region produces 25% of the world's sulfur, and...
Dettagli operativi
Glass: Rising Energy Costs The production of glass requires large amounts of energy: the necessary raw materials – silica sand, limestone, and sodium carbonate – must be melted at a temperature of around 1,500 °C, and 75% of the energy used to power the furnaces comes from natural gas. 'We can count on a good supply of recycled glass and locally sourced sand, but we are not entirely protected from fluctuations in energy, diesel, and transportation costs. We are closely monitoring the situation,' declared a spokesperson for the Swiss glass producer Vetropack. 'If we were to introduce surcharges related to energy costs, we would communicate this directly to our customers.' The increase in energy prices could also reflect on the cost of beverages, warns the Swiss industry in the sector, which includes producers of mineral water, beer, and soft drinks. In 2024, Switzerland produced 510 million liters of bottled mineral water, of which 3.7 million were destined for export. ### Impact on Consumers The rise in fertilizer and energy prices could have a significant impact on Swiss consumers. According to the FAO, the global decline in household disposable income could reach up to 1.6%, with more marked effects in Asia and Africa. In Switzerland, where purchasing power is higher, the impact could be less severe but still tangible. 'In a rich country like Switzerland, this price increase is painful but still absorbable,' declared Florence Schurch of Suissenégoce. However, even in Switzerland, the rise in prices could influence consumption habits, pushing consumers to seek cheaper alternatives or reduce the quantity of products purchased. ### Future Scenarios The current situation could evolve in different ways. If the conflict in the Middle East were to continue, the prices...
Punti chiave
What consumers can do If you are a Swiss consumer, there are several things you can do to mitigate the impact of rising prices: 1. Monitor prices: Keep an eye on food and beverage prices, especially those that may be affected by the increase in fertilizer and energy costs. 2. Look for alternatives: If the prices of some products rise too much, consider opting for cheaper alternatives or reducing the quantity of products purchased. 3. Plan your purchases: Try to plan your purchases to take advantage of offers and discounts, especially for non-perishable products. 4. Reduce waste: Try to reduce food and beverage waste so you can get the most out of your purchases. 5. Use the Frontaliere Ticino calculator: To get a clearer idea of how rising prices might affect your household budget, you can use the Frontaliere Ticino calculator. This tool will help you calculate your disposable income and plan your purchases more efficiently. ### What businesses can do If you are a business in the food or raw materials sector, there are several strategies you can adopt to cope with the current uncertain situation: 1. Diversify your supply sources: Try to diversify your supply sources so that you do not depend too much on a single region or country. 2. Invest in new technologies: Consider investing in new technologies that can improve the efficiency of your production and reduce costs. 3. Adapt your production and distribution strategies: Be ready to modify your production and distribution strategies as the situation evolves. 4. Monitor markets: Keep an eye on commodity and energy markets so you can react quickly to any changes. 5. Use the Frontaliere Ticino calculator: To get a clearer idea of how rising prices might affect your business, you can use the Frontaliere Ticino calculator...
Punti chiave
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Frequently Asked Questions
- Which sectors are most affected by the war in Iran?
- The most affected sectors are the trade of fertilizers and the production of glass bottles. The blockade of the Strait of Hormuz has interrupted the flow of essential raw materials, causing an increase in prices and greater uncertainty.
- How can I mitigate the impact of rising prices?
- You can monitor prices, look for cheaper alternatives, plan your purchases, reduce waste, and use the Frontaliere Ticino calculator to get a clearer idea of your household budget.
- What can companies do to address the current situation?
- Companies can diversify their sources of supply, invest in new technologies, adapt their production and distribution strategies, monitor markets, and use the Frontaliere Ticino calculator to plan their strategies more efficiently.