Accra: Heightened geopolitical tensions in the Middle East have not only affected energy costs but also pose a significant risk to global fertiliser supply, the World Bank has cautioned. This was highlighted at a World Bank/Civil Society Organisation engagement on food security in Accra last week.
According to Ghana Web, Agricultural Economist Dr Ashwini Rekha Sebastian from the World Bank's Ghana office stated that the ongoing tensions are creating anxiety about potential price surges and shortages in input supply and key staples, such as rice. The crisis has led to a dramatic increase in global fertiliser prices, with urea prices soaring over 50 percent to more than US$700 per tonne. This escalation is primarily due to disruptions in key nitrogen-based fertiliser supplies.
The conflict has significantly impacted shipments through the Strait of Hormuz, resulting in a 24 percent increase in ammonia prices and causing severe shortages due to bottlenecks in natural gas supply. The Middle East accounts for about a fifth of global trade for crucial phosphate products, according to The Fertiliser Institute. This disruption poses a considerable threat to the global food supply, which relies on phosphates for the growth of essential crops like soybeans and potatoes.
Dr Sebastian also mentioned that the World Bank has committed US$75 million to a cocoa rehabilitation initiative in Ghana. This effort aims to restore approximately 25,000 hectares of cocoa farms, which are currently facing challenges from disease outbreaks and declining productivity. The funding, sourced under the West Africa Food Systems Resilience Programme (FSRP), will help revive affected farmlands, improve yields, strengthen farmer incomes, and ensure the long-term sustainability of the cocoa sector.
Beyond cocoa, the programme is also supporting seed system development in specific clusters, including trials of improved tomato crop varieties capable of withstanding dry season conditions, particularly in northern Ghana. Osei Owusu Agyeman, Project Coordinator for the FSRP, highlighted the programme's goal of producing 6,000 metric tonnes of tomatoes to reduce the reliance on imports, addressing current gaps caused by low local production. The project aims to achieve yields of 15-20 tonnes per hectare, addressing post-harvest losses and off-season shortages.
Participants in the engagement included the Peasant Farmers Association (PFAG), Rice Farmers and Millers Association, and Ghana National Association of Poultry Farmers.