Middle East conflict sends input and transport costs climbing for growers with consumers set to feel the pinch
Malaysian consumers could see fruit prices jump as growers grapple with rising costs following the disruption caused by the current Middle East conflict.
According to a report from Sin Chew Daily, Koh Lai Ann, president of the Federation of Malaysia Fruit Farmers Association, has flagged the impact of the shipping chaos on local growers.
Koh told Sin Chew Daily that fruit prices could increase 20 per cent or more because of a lack of fertiliser. He noted some Malaysian fertiliser suppliers had suspended new orders since the middle of March.
“In just two weeks, fertiliser raw material prices have surged by 100 per cent to 150 per cent,” Koh said. “Even with money, fertiliser cannot be purchased.”
It’s not only fertiliser price increases that could be passed on. Delayed access to inputs could disrupt fertiliser schedules, which are critical to producing a successful crop.
“This will not only reduce yields in the next season by an estimated 15 per cent to 20 per cent, but may also affect the long-term productivity of fruit trees,” said Koh.
Other impacts include rising fuel prices and logistics disruption that could affect export categories such as durians and pineapples.
“Farmers are also reducing the use of chemical fertilisers and are seeking organic alternatives, but this can only serve as a temporary measure,” he said.
“With shipping routes being diverted away from the Red Sea, container allocation has become extremely difficult. Delays in export logistics pose a critical challenge for fruits that require freshness.”
Malaysia’s Ministry of Agriculture and Food Security has convened an emergency consultation meeting, bringing together major fertiliser supplier associations, industry representatives and state agriculture officials, with the Ministry pledging a response to support growers.
