Gov’t moves to shield farmers, fishers from global fertiliser and oil shocks

As global fertiliser and oil prices climb in the wake of the Strait of Hormuz closure amid the US-Israeli conflict with Iran, Jamaica’s Ministry of Agriculture says it is rolling out a comprehensive strategy to lessen the potential fallout on the country’s agriculture and fisheries sectors.

Speaking yesterday during a post-Sectoral Debate press conference, Agriculture, Fisheries and Mining Minister Floyd Green said this involves support from strategic partners, engaging stakeholders, and providing relief where possible. 

He pointed to the increase in the price of fertiliser on the world market resulting from the conflict, noting that the full effect is not yet being felt locally. 

The closure of the Strait of Hormuz in February caused global fertiliser prices to soar up to 70 per cent in some regions. Nearly one-third of the world's traded fertiliser, including vital urea, sulfur, and potash, is transported through the key maritime corridor.  

Additionally, about 20 per cent of the world’s total oil and liquefied natural gas (LNG) usually passes through the Strait of Hormuz. The high natural gas prices, which make up 70 per cent to 90 per cent of nitrogen fertiliser production costs, have accelerated, causing additional price shocks. 

Under special agreements, Iran has let some carriers sail through the key waterway, but operations remain highly constrained and volatile. 

Green said the increase in the prices of fertiliser inputs such as nitrogen and potassium has resulted in price shifts in Jamaica, but he said, it has so far, it has been minimal. 

“There has been increased price, and we have seen some of that being passed on to our farmers. In fact, we would have met with our major fertiliser supplier, and they have cauterised that as much as possible, so when we look at the extent of the increase on the world market, that has not been passed on yet to our farmers,” he said. 

 “So, for example, if the prices have gone up by 40 per cent, that was not replicated here. The prices may have gone up by 10 per cent thus far,” he added. 

Declaring this a significant feat, he, however, expressed doubt, however,  as to its sustainability in the face of continuing conflict. 

But in the meantime, he said the Government has been partnering with suppliers to explore new fertiliser formulations. 

“What you’re hearing more and more is that our fertiliser companies are working with us to develop a yam fertiliser, a banana fertiliser, so that you are getting specifically the nutrient that that crop needs and not the nutrients that you would be wasting. So you end up now maximising your spend,” he said. 

Further, he said the Government is also tapping into the relationship it has with the Kingdom of Morocco, which had previously supplied the country with fertiliser during a time of global supply chain disruption. 

Responding to the concerns by fishermen that rising oil prices have caused many to make shorter trips out to sea, Green said the ministry is exploring how it can reduce some of the costs associated with their livelihoods. 

“Ultimately, we look at the pot. We might not be able to affect the fuel price, but if we can reduce the cost for your fishing wire, then overall, you will see a reduction in your cost,” he said. 

He said the Government will be establishing fuel depots in parishes that are without, the first of which will be in Trelawny in the next two months. 

“The closer you bring it (fuel) to the fisherman, the cheaper it is because you don’t have those transportation costs.” 

Additionally, he said training has also been provided to fishermen to educate them on more fuel-efficient engines.

sashana.small@gleanerjm.com