Fertiliser fears

This episode of Wake Up To Money explores the cascading economic impacts of the ongoing conflict between the US, Israel, and Iran, particularly focusing on disruptions to global shipping through the Strait of Hormuz. The closure of this vital route has led to skyrocketing fertilizer prices—doubling since early 2024—causing farmers to delay purchases, which threatens future food production and could drive up food prices. Ahmed El-Hosy, CEO of Fertiglobe, one of the world’s largest nitrogen fertilizer exporters, explains how supply chains are being rerouted via land and rail, adding significant time and cost. Meanwhile, a farmer from North Wales, Clea Jones, confirms that fertilizer and fuel costs are already being passed on to consumers through mechanisms like cost-of-production contracts, with food inflation expected to rise in the coming months. The episode also examines broader economic ripple effects, including rising freight costs, consumer caution, and the Bank of England’s struggle to anchor inflation expectations. In a lighter segment, the show turns to the booming ready-to-drink (RTD) cocktail market, discussing how brands like Moth Drinks are redefining convenience and quality, with Diageo now stepping up its efforts to capture this growing trend despite earlier hesitation. The episode closes with a reminder of the UK’s upcoming general election and the need for media neutrality on polling day.