THE GLOBAL WINDOW OF TURKISH FOOD AND AGRICULTURE The Global Window of Turkish Food and Agriculture Sector
Related Articles
The escalation of the Iran-centred conflict in the Middle East has heightened supply chain concerns in the global food sector, with the confectionery sector being one of the first to be affected. According to experts, disruptions to critical trade routes and interruptions in energy supplies caused by the conflict could hamper the supply of key raw materials used in chocolate and confectionery production.
Industry representatives note that disruptions in the Strait of Hormuz, in particular, are causing serious problems in the global logistics network. Due to intense military activity in the region, some major shipping companies have ceased using this route, whilst it is reported that some container ships in the area have become stranded in ports. This situation is making it difficult to transport food commodities and various raw materials around the world.
Sugar, cocoa and packaging materials are at risk…
The confectionery industry is a sector highly dependent on global trade. Sugar, cocoa, glucose syrups, special vegetable oils, additives and packaging materials used in chocolate and confectionery production are mostly sourced through international supply chains. Consequently, disruptions in trade routes are felt rapidly within the sector.
According to experts, rising energy prices could also put pressure on the sector. This is because natural gas and petroleum derivatives used in confectionery production play a significant role in both production processes and packaging materials. The fact that the Strait of Hormuz accounts for approximately 20 percent of global oil and liquefied natural gas transport indicates that disruptions in energy flows could rapidly increase food production costs…
