Chronicle of raw materials
Soaring gas prices jeopardize fertilizer production in Europe
Audio 01:35
A week ago, the Russian Ministry of Industry recommended that its fertilizer producers temporarily suspend their exports, citing the "sabotage" of foreign companies hindering the transport of this product.
© CC0 Pixabay/Samuel Faber
By: Altin Lazaj
2 mins
Yara, the world's largest manufacturer of crystalline fertilizers, is suffering the consequences of soaring gas prices.
The Norwegian company has decided to reduce its production in Europe.
Advertising
Yara gives few details, the company just announces that it will temporarily reduce the activity of its factory in Le Havre in France and that of Ferrara in Italy, due to the soaring price of gas.
The latter represents 90% of the production costs of mineral fertilizers.
The Norwegian company has already reduced its production temporarily for the same reasons last September.
Yara's latest decision to reduce its activity at the two sites in Europe only heightens fears of a shortage of fertilizers, the prices of which have again soared with the war in Ukraine.
The agricultural world is also worried about the repercussions of the conflict in Ukraine.
Russia is a major supplier of nitrogen fertilizers for the European Union, the country provides 30% of the Union's needs.
Moreover, Russia is a key player: its production represents a quarter of world trade.
A reduction, or even a break in Russian supplies, is quite possible.
A week ago, the Russian Ministry of Industry recommended that its fertilizer producers temporarily suspend their exports, citing the "sabotage" of foreign companies hindering the transport of this product.
A real headache for the agricultural world, which is already faced with a general increase in production costs.
In France, if fertilizer stocks for this year are already assured, it is purchases for the 2023 season that worry farmers.
A situation that could encourage them to use less fertilizer next year, with the risk of seeing field yields drop.
The Yara company has been alarmed for its part for several months on the risks of this surge in prices which could, in the long term, threaten world food security.
Newsletter
Receive all the international news directly in your mailbox
I subscribe
Follow all the international news by downloading the RFI application
google-play-badge_EN
Norway
Agriculture and Fishing
Trade and Exchanges
Russia