Fruit prices in Malaysia set to rise as fertiliser supplies dry up amid Middle East war

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PETALING JAYA – Fruit prices in Malaysia are expected to increase on the back of transport disruptions caused by the US-Israel war with Iran.

Shipping chaos caused by the conflict in the Middle East has led fruit farmers to buy more expensive chemical fertilisers for cultivation, said Mr Koh Lai Ann, president of the Federation of Malaysia Fruit Farmers Association.

As a result, consumers in Malaysia may soon be forced to pay more for fruit as production shrinks significantly.

Mr Koh said the ripple effects of the conflict are expected to push fruit prices in Malaysia up by 20 per cent or more.

Speaking to Sin Chew Daily, he said the Middle East is a key production hub and transit point for fertiliser raw materials.

Ongoing instability has disrupted shipping routes through the Suez Canal and the Red Sea, prompting some Malaysian fertiliser suppliers to suspend new orders since the middle of March, he added.

“In just two weeks, fertiliser raw material prices have surged by 100 per cent to 150 per cent.”

Mr Koh warned that if the conflict continues to hinder shipments, Malaysian fruit farmers may face a situation of no fertilisers. “Even with money, fertiliser cannot be purchased.”

He explained that delays in fertiliser supply would directly disrupt fertilisation schedules, which are critical in fruit production.

Missing the proper timing could result in poor fruit development, higher fruit drop rates and even weakened trees due to insufficient nutrients.

Mr Koh said: “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.”

With output expected to decline sharply, he expects the local fruit market to face serious shortages.

Prices may rise by 10 per cent to 20 per cent – or even more – within the next three to six months, he said.

Fertilisers account for 30 per cent to 50 per cent of production costs, and rising fuel prices pushing up logistic costs will cause overall production costs to surge by at least 30 per cent, Mr Koh added.

“Farmers are also reducing the use of chemical fertilisers and are seeking organic alternatives, but this can only serve as a temporary measure.”

Mr Koh said export-dependent fruits such as durians and pineapples face even greater risks.

In addition to higher fertiliser costs, producers of such fruits must also contend with surging freight and insurance charges.

Mr Koh explained: “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.”

He added that Malaysia’s Ministry of Agriculture and Food Security had convened an emergency consultation meeting, bringing together major fertiliser supplier associations, industry representatives and state agriculture officials to discuss the impact.

“The association highlighted the sharp increase in fertiliser and diesel costs, as well as the severe squeeze on profit margins,” Mr Koh disclosed.

He added that the ministry has taken the feedback seriously and pledged to follow up in greater detail after Hari Raya Aidilfitri to explore appropriate response measures. SIN CHEW DAILY/ASIA NEWS NETWORK