ISTANBUL

Global food and agriculture value chains face significant pressure from rising energy and logistics costs fueled by the Iran-US-Israel conflict, affecting everything from production to delivery, the head of International Association of Operative Millers (IAOM) Eurasia said on Tuesday.

The primary issue is a transport chain that has become more expensive, slower, and increasingly uncertain rather than just energy prices, Eren Günhan Ulusoy said in a press release.

These developments will impact costs in the short term, pricing in the medium term, and overall competitiveness in the long term, according to Ulusoy.

The Strait of Hormuz, which has been largely closed since the war began on February 28, is a key route for energy and fertilizer sources.

He noted that rising diesel and fertilizer costs will be decisive for new season crops in the Northern Hemisphere, particularly for corn and other grains.

High diesel prices increase costs before farmers even enter the field, while expensive fertilizer leads to either lower usage —threatening yield and quality— or higher production costs, he stressed.

Fertilizer supply risks are growing due to both energy costs and restrictive trade policies and quotas seen globally, Ulusoy highlighted.

Türkiye maintains strategic role in food security

He said Türkiye maintains its position as the world flour export champion for 10 years, accounting for 23% of global trade despite producing 15 million tons against a total capacity of 32 million tons.

Ulusoy said Türkiye’s strong production culture, advanced industrial infrastructure, and rapid delivery capabilities provide a significant competitive advantage in reaching broad geographies.

The Ministry of Agriculture and Forestry and the Turkish Grain Board (TMO) play a vital regulatory role in managing the domestic grain market, he emphasized.

TMO acts as a strategic mechanism to ensure market stability by setting reference purchase prices that protect producer income during volatile periods.

TMO’s strategic grain stocks also allow for market intervention to regulate supply and limit sudden price fluctuations during global crises, Ulusoy added.

He said this intervention capacity serves as a safeguard for food supply security by balancing producer protection with the prevention of extreme consumer price volatility.