Agribusiness

With the closure of the Strait of Hormuz, here are the effects on food production and stocks in Italia

Supply chain Italia: EU must create strategic reserves of critical raw materials and fertilisers. China and the US also invest in stockpiles to protect internal stability and project geopolitical influence

by Giorgio dell'Orefice

(Reuters)

3' min read

Translated by AI
Versione italiana

3' min read

Translated by AI
Versione italiana

The food crisis was touched upon in the Covid emergency. It was felt but absorbed (at great cost) with the Russian-Ukrainian war. It risks leaving its mark heavily with the outbreak of the new crisis in the Middle East.

This was discussed during the two days in Brussels at the 11th Global Food Forum of Farm Europe, the association founded 11 years ago as an agricultural think tank and today made up of more than 35 farmers' organisations (including the Italian Coldiretti), companies in the agri-food chain and scientists from 17 different countries.

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Reinforcing production is not enough

"Strengthening Europe's production capacity remains essential but it is not enough," said Luigi Scordamaglia, CEO of Filiera Italia and president of Eat Europe, speaking at the Forum. "The EU must reduce its exposure to external shocks by creating strategic reserves of essential agricultural raw materials and critical inputs such as fertilisers and feedstuffs (products for which Italia has a large deficit nrd).

The current fertiliser crisis, aggravated by geopolitical tensions and trade measures, has already led to increased costs and reduced yields. Strategic reserves would be a key risk management tool to protect European farmers and consumers from further volatility'.

One third of the world's fertilisers are blocked in the Strait of Hormuz

Already yesterday, at the meeting of Farm Europe, Coldiretti president Ettore Prandini had recalled how 'from the Strait of Hormuz, now blocked, passes at least one third of the world's fertiliser production. If we consider that another significant share is produced in Russia and Belarus we realise that we are in serious danger of being left without a fundamental tool for agricultural activity. Without fertilisers we do not produce'.

Food reserves strategic leverage tools

"The major global powers," Scordamaglia added, "are already using food reserves as strategic leverage tools. China and the US invest heavily in storage to protect internal stability and project geopolitical influence. While instead what does the EU do? it decides to weaken its proactive presence in regions like North Africa and the Middle East, where food insecurity is on the rise.

If Europe wants to regain strategic relevance in its neighbourhood, it must be able to mobilise food assistance quickly and credibly. Food security is also foreign policy'.

Strategic reserves,' explain Filiera Italia, 'can function as an intelligent stabilisation tool in cyclical agricultural markets. By temporarily withdrawing surpluses during price collapses and releasing stocks during periods of shortages. In this way, the EU can protect farmers' income, strengthen the resilience of the agri-food supply chain and protect consumers from inflationary spikes.

Supply chains cannot be taken for granted

'This is not a return to outdated forms of interventionism,' continued Scordamaglia, 'but a pragmatic response to a world in which global supply chains can no longer be taken for granted. Concrete measures supported by dedicated funding lines are needed. Which should aim, on the one hand, to promote the modernisation and strengthening of storage infrastructures and, on the other hand, to support the structured withdrawal and distribution of stocks'.

'In an increasingly unstable world,' concluded Scordamaglia, 'resilience can no longer be improvised or treated as an emergency response. It must be designed with foresight, preparation and strategic vision'.

Agea: guaranteed liquidity for Italian farmers to operate

The director general of the Agency for Disbursements in Agriculture (overseen by the Ministry of Agriculture, food sovereignty and forests, ndr), Fabio Vitale, also spoke today of 'food resilience'. Although there is a lack of adequate stocks of agricultural commodities and fertilisers, however, 'the agricultural system in Italia,' explained Vitale, 'at least rests on solid financial foundations and renewed bureaucratic efficiency.

In 2025, EUR 5.6 billion was disbursed to farmers, of which EUR 573 million was disbursed in the last quarter (December-February). Altogether, they received more than EUR 6 billion in 14 months, a basic cash flow to counter international market pressures and rising operating costs. At a time of severe global destabilisation, ensuring immediate liquidity means allowing companies to operate with greater peace of mind.

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