Bill Anderson, CEO of the agricultural and pharmaceutical giant Bayer, has warned of global crop failures and rising food prices in light of the conflict in Iran and the blockade of the Strait of Hormuz. Approximately one-third of the global trade in nitrogen-based fertilizers passes through this vital shipping route, the executive told news portal 't-online' in an interview published Friday, according to a preliminary report. Should the strait remain blocked, it could lead to significantly lower harvests in the Northern Hemisphere as early as this autumn. This would also impact the agri-pharma group, despite Bayer not producing fertilizer itself. Furthermore, a fertilizer shortage for corn could lead to animal feed bottlenecks, potentially driving up the cost of meat, eggs, and other food products.

At the same time, the CEO voiced sharp criticism regarding the economic framework in Germany. The country faces massive challenges and suffers from a 'massive locational disadvantage'. Anderson cited high non-wage labor costs, a paralyzing level of bureaucracy, and high energy costs as primary reasons. Electricity prices in Germany are more than three times higher than on the Texas Gulf Coast and more than double those in China. Despite extensive discussions, he sees no relief; instead, reporting requirements and regulations continue to increase.

Regarding the federal government, however, the manager remained diplomatic. Chancellor Friedrich Merz is very astute and possesses significant experience in politics and business. Anderson stated he did not wish to complain about the government in general terms, as it currently faces a difficult situation. However, to reawaken German ingenuity, the country needs an inspiring mission. 'German ingenuity may be slumbering right now. But it is not dead. The task of leadership is to wake it up - not to explain why something cannot be done,' Anderson said.

(Written by Alexandra Falk. For inquiries, please contact our editorial office at berlin.newsroom@thomsonreuters.com (for politics and economics) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).)