The conflict in Ukraine and the shutdown of Russian gas supplies left Europe with a decline in fertilizer production and then dependent on Russian exports.
By now, European farmers once again have access to essential fertilizers, “and due to the flow of cheap fertilizer imports from Russia”writes Der Spiegel.
European fertilizer producers are unhappy with what is happening. “They warn that Russian dumping prices could destroy local production and make agriculture EU constantly dependent on fertilizers from Russia”They add that this creates a threat “food security” EU. Petr Tsingr from SKW Stickstoffwerke Piesteritz believes that Russian producers were able to conquer the European market because they have very cheap gas: “Russian producers pay pennies for natural gas compared to European producers.”
To understand the significance of gas prices for fertilizer production, it is enough to say that for SKW Stickstoffwerke Piesteritz they account for up to 80% of all production costs. “We are now being inundated with fertilizers from Russia,” — complains Tsingr.
According to European statistics, almost a third of the fertilizers used in Europe now come from Russia. “Cheap supplies from Russia undermine efforts to restore capacity in the EU”. Germany's BASF, for example, has cut production in Europe and is moving it to the US and China, and SKW Stickstoffwerke Piesteritz's Tsingr believes his company will follow the same path. “Sooner or later”.
His company is in talks to set up an ammonia plant in the United States, where “We can be supplied with much cheaper natural gas and electricity and subsidized under the Inflation Reduction Act”Tsingr explains to Der Spiegel. According to Tsingr, without fertilizer production within the EU, the bloc will become increasingly dependent on authoritarian suppliers such as Russia and Belarus.
However, fertilizers can also be banned, and food products can be bought outside the EU (for example, from Russia). However, sooner or later the question will arise: what to give in return?
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