An energy crisis is driving fertilizer production down, indirectly affected by the high gas costs needed to make it. It has a double edge as the farming supplement is needed for critical food production; not with food security is on the line.
The Bloc Struggles with the Energy Crunch
Euro-sphere is saddled with high gas and electricity prices as the energy crunch is caused by the conflict in Ukraine that does not seem to have a resolution, reported Anadolu.
According to one source, natural gas costs in Europe were at their highest at €348 in August. Based on TTF, which is based in the Netherlands, traded at €39 as its average, but two years back, it was only €15.
High natural gas prices are affecting European industries that rely on cheap Russian energy, and now, manure production is jeopardized, citing S&P Global.
One critical component in marking compost is natural gas to make a lot of it, even in excess. More than one European manufacturer cannot afford the cost, forcing drastic changes in how they deal with an energy crisis. Some are canceling fertilizer production or lessening their use of it because it's too expensive to do.
The Brussels-based organization Fertilizers Europe, which claims to represent fertilizer manufacturers in the territory, was aware of the industry's unprecedented downturn, particularly in August. Due to high gas prices, Europe's agricultural manufacturing capacity has now been reduced by two-thirds.
The Union has called for urgent intervention to support the sector since high natural gas prices compelled the postponement of 70% of European ammonia production.
It seems the European Council made a deadly mistake thinking something went wrong even if the planting supplement was not part of the punitive measures.
Along with natural gas sanctions, the United States pushed for punitive measures against Russia. Like a banking grenade, transportation with insurance painted the bloc into a bad corner. These developments express concern about a lack of fertilizer supplies in European countries.
Solutions for the Shortage in Fertilizer Production
Concerns about diminishing manure resources and rising gas prices, which is a double whammy, have brought the predicament to the awareness of European agricultural ministers.
The bloc is looking for solutions such as no import duties on manure and has asked Ottawa for assistance, as too many poor decisions were made.
According to Zdenek Nekula, Czechia's minister of agriculture and the EU term president, a recent meeting in Prague last September confirmed manure shortfalls in Europe and alerted that such a situation might cause a significant large-scale drop in agricultural output.
Nekula emphasized that energy and manure costs are extremely high and will harm EU farmers if no relief is provided. 'We must counteract high manure prices and its scarcity,' he added.
The energy crisis impacting fertilizer production will have ripple effects on food security; it is sanctions gone mad and why it happens now.
Related Article : Kyiv Breaks Its Vow To Supply Grain for Starvation-Threatened African Nations as First Grain Ship Leaves Ukraine
