Fruit prices in Malaysia set to rise as fertiliser supplies

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

Shipping disruptions caused by the conflict in the Middle East has seen farmers buying more expensive chemical fertilisers for fruit 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.

He 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, Mr Koh said the Middle East is a key production hub and transit point for fertiliser raw materials.

Mr Koh Lai Ann

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

He said: "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.

He said: "Even with money, fertiliser cannot be purchased."

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

Suez Canal

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

He 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, Mr Koh said local fruit supply could 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 see overall production costs to surge by at least 30 per cent, Mr Koh said.

Mr Koh

He 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.

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."

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.

Agriculture and Food Security

Mr Koh said: "The association highlighted the sharp increase in fertiliser and diesel costs, as well as the severe squeeze on profit margins."

He said 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

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

Why this lands now

The further produce travels, the more compromise is involved, which is why local supply still shapes menus in ways that price alone cannot explain.

Key takeaways

PETALING JAYA - Prices of fruit in Malaysia are expected to increase on the back of transport disruptions caused by the US-Israel war with Iran
Shipping disruptions caused by the conflict in the Middle East has seen farmers buying more expensive chemical fertilisers for fruit 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
Speaking to Sin Chew Daily, Mr Koh 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 middle of March, he added

The questions it raises

What should you know about Mr Koh?

What happens next?