Strait of Hormuz Disruptions Add Pressure to Strained Canadian Agriculture Sector

May 19, 2026

Shipping disruptions in the Strait of Hormuz are adding fresh pressure to an already strained operating environment for Canadian agri-businesses, according to new survey data released by the Canadian Federation of Independent Business.

In survey results released last week, the CFIB said 44% of agri-businesses reported dealing with higher costs and supply disruptions for key inputs such as fertilizer because of shipping disruptions in the Strait of Hormuz, a critical global trade route. The disruptions come at a particularly sensitive time for producers during spring seeding operations.

“High taxes, ongoing red tape, and rising energy costs are already straining Canada’s food supply. Now, the Strait of Hormuz-related disruptions are compounding the squeeze,” Juliette Nicolay, CFIB policy analyst, said in a release.

The report also pointed to broader structural concerns within the agriculture sector, noting that Canada has not seen a net increase in agricultural businesses since the fourth quarter of 2022. Confidence within the sector remains among the weakest in the country, with CFIB’s April Business Barometer placing agri-business sentiment near the bottom of all industries at 53.3 points.

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