War in Iran Disrupts Vital Swiss Food Supply Chains and Triggers Global Fertilizer Price Surge

The Strait of Hormuz blockade is driving up fertilizer prices and energy costs, impacting Swiss glass, plastic, and chocolate industries significantly.

By: AXL Media

Published: Apr 17, 2026, 4:10 PM EDT

Source: The information in this article was sourced from SWI swissinfo.ch

Strategic Bottlenecks in the Global Fertilizer Trade

The blockade of the Strait of Hormuz has created an immediate crisis for the global fertilizer market, an industry where Swiss commodity traders play a central role. Approximately 30% of the world’s fertilizer supplies pass through this specific maritime corridor, and the sudden disruption has caused urea prices to spike by as much as 60%. Florence Schurch, the secretary general of the Swiss commodity trading association SUISSENÉGOCE, noted that the Gulf region provides a critical share of the world’s ammonia and sulphur, making it impossible to switch supply sources on short notice. While wealthy nations like Switzerland may absorb these costs, the impact on farmers in Africa and Asia is expected to be brutal, potentially leading to lower crop yields and increased food insecurity.

Energy Intensity and the Rising Cost of Glass

Swiss glass manufacturers like Vetropack are facing significant operational pressure as natural gas prices fluctuate due to the regional instability. The production of glass is an incredibly energy intensive process, requiring furnaces to reach temperatures of 1,500°C to melt raw materials like silica sand and limestone. Although some producers benefit from locally sourced recycled materials, they remain highly vulnerable to the rising costs of diesel, freight, and gas. The Swiss beverage industry, which produced over 510 million liters of mineral water last year, has warned that these energy surcharges may soon be passed on to customers, affecting the retail price of everything from bottled water to beer and soft drinks.

Plastic Packaging Shortages and Petrochemical Volatility

The Swiss plastics industry is currently observing the Middle Eastern conflict with deep concern, as the sector relies heavily on oil and gas precursors to manufacture food grade packaging. Nearly 36% of all plastic consumed in Switzerland is used for food containers, bags, and protective films, all of which depend on a steady supply of ethylene, naphtha, and styrene from European refineries. The destruction of several production facilities in the conflict zone has further reduced the availability of these essential raw materials. According to the industry association KUNSTSTOFF.swiss, the blockade is forcing companies to prepare for alternative logistics, resulting in longer delivery times and significan...