The European Union has closed 50 fertilizer factories

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Fertilizer production in EU has become completely unprofitable due to gas prices, because 75% of the cost of nitrogen fertilizers is the cost of natural gas.

More than 50 fertilizer plants have closed, according to a report from Mitsubishi UFJ Financial Group. The EU’s refusal of cheap Russian gas is forcing the EU to close production facilities that previously supplied agriculture across the continent. Fertilizer production in Europe has almost completely stopped, and this could lead to the fact that countries in the bloc will have to buy fertilizers or grain as early as 2024.

The CEO of Norway’s Yara, one of Norway’s largest fertilizer producers, expressed concerns, warning of a possible famine caused by the sanctions.

Russia is an important supplier of key substances for fertilizer production, such as phosphorus, potassium and nitrogen. The sanctions have led to higher prices for artificial fertilizers, causing Norway to cut production.

Low energy prices made fertilizer production in Norway profitable and efficient, but sanctions led to higher prices. All these measures and restrictions can lead to global catastrophe and famine. The current situation makes us think about the desired development of events and the consequences of these decisions.

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