Posted on 10/23/2022 8:17:41 AM PDT by george76
Fertilizer Giant Yara Slashes European Output As Energy Crisis Worsens..
Europe’s fertilizer supply crunch continues to tighten after Yara International ASA announced Thursday that third-quarter ammonia output was slashed due to skyrocketing natural gas prices, putting more upward pressure on food inflation as the cost-of-living crisis worsens.
The Norwegian producer said ammonia output in the quarter dropped to 57% of capacity in Europe, plunging from 81% in the previous quarter. It warned output could collapse to just 35% if NatGas prices stay elevated through the cold season, according to Bloomberg.
Russia’s squeeze on NatGas, Western sanctions on Moscow inhibiting energy flows from Russia, and Nord Stream pipeline sabotage has caused a massive squeeze on shipments to the energy-stricken continent. The good news is Europe’s NatGas storage facilities are almost full, but the EU has yet to find new fuel sources to offset Russian flows entirely. A significant risk looms if a cold, harsh winter quickly draws down supplies.
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Drawing down on supplies would send EU NatGas prices to higher levels from here.
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As a reminder, NatGas is a key feedstock for fertilizers and a power source for European heavy industries. Companies and households have been battered by soaring energy inflation.
The problem of reduced fertilizer output by Yara and others is that higher costs will affect farmers into the next growing season.
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Some farmers may reduce the amount of fertilizer they use to save costs which may stress wheat and corn crops next year and reduce yield potential. Perhaps the global food crisis only worsens from here.
will the EU in Brussels go all North Korea, and start demanding every citizen save their excrement (and indeed, give them quotas), for delivery to state-run farms?
They have the totalitarian structure and bureaucracy for it.
A severe recession is about to engulf most of Europe. It would not happen had Europe not abandoned coal, nuclear power and fracking. The Russian cutoffs of gas and oil would not have been as critical. This unfortunately will hurt the American and world economy as well. Green lunacy is eroding civilization.
you need natural gas to make fertilizer...and Russia is right at your door...wise up.....make a deal.
Thank God for our frackers. We have loads of natural gas to make fertilizer. Though our domestic NatGas and fertilizer prices are going up.
Home Depot is charging the same as last year. This fertilizer has iron and other minor elements.
https://www.homedepot.com/p/Vigoro-40-lb-All-Season-Citrus-and-Avocado-Plant-Food-6-4-6-162125/203089345
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