The European Energy Crisis struck the fertilizer industry, which puts jeopardy with the supply of products. According to Bloomberg, the reduction in food supply will lead to a row of prices for food.
The Norwegian Fertilizer Manufacturer Yara International ASA said that would reduce about 40 percent of its production facilities in Europe due to record increase in energy prices. Yara trades about one third of the world ammonia used both in fertilizers and in textile industry, cosmetics, automotive and health care. The company’s factories are located in the Netherlands, Germany, Norway, Italy, France, Great Britain and Belgium.
Another CF Industries firm on August 15 reported that it stops the work of two plants in Britain due to the cost of energy. Industrial giants of the region, including German BASF SE, also warn about the negative effects of the jump in electricity prices.
Gas prices grew in Europe more than three times in 2021, which raised the restoration of the economy in the eurozone. On the verge of the energy catastrophe turned out to be and published from the EU to the United Kingdom. Rising gas, weak work of wind stations and cessation of electricity supply from France put the country into a crisis position.
The sharp increase in the cost of the products was influenced by not only electricity prices, but also an increase in expenses due to extreme weather conditions and a pandemic. Transport costs continue to grow, and interruptions in supply chains still occur due to local locked. Hurricane Ida and Storm Nicholas also inflicted serious damage to agriculture. According to the Food and Agriculture Organization of the United Nations (FAO), food prices have reached a record level over the past 60 years. Especially strong inflation hit the poorest import countries.