Plastic Shortages Threaten Global Food Prices

Food prices could remain elevated even after recent geopolitical disruptions ease, as shortages of plastic packaging materials continue to ripple through global food supply chains. According to Bloomberg, disruptions linked to the Iran conflict and restrictions on shipping through the Strait of Hormuz have reduced supplies of naphtha—the primary feedstock for plastic production—leading to higher packaging costs across Asia.

Since food packaging relies heavily on plastics, processors and manufacturers are increasingly facing higher production expenses that are beginning to be passed on to consumers. Vietnam's Minh Phu Seafood reported a roughly 50% increase in plastic packaging costs since the conflict began, while Malaysia's Farm Fresh has already raised prices for selected dairy products in June—its first price increase since 2023—citing higher packaging and operating costs.

Analysts warn that although diplomatic efforts are underway, restoring plastic supply chains will take time, potentially keeping grocery prices under pressure even as energy markets stabilize. The development highlights the growing vulnerability of global food and dairy supply chains to disruptions in packaging raw materials, alongside traditional risks from fuel and agricultural inputs. (businesstimes.com.sg)

Source: Dairynews7x7 26 June, 2026 Read full story here

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