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That's what you get when you do stuff like this [1]: > Half of European ammonia production plant closed > Spiralling gas prices have caused a decline in Europ
by paganel 4y ago
That's what you get when you do stuff like this [1]:
> Half of European ammonia production plant closed
> Spiralling gas prices have caused a decline in European ammonia production, thereby aggravating the shortage of fertilisers in Europe. CRU Group analysts estimate that around half of European ammonia production plant and 33% of nitrogen fertiliser plant has closed down as a result
All this will, of course, be reflected in even higher prices for basic food stuff further down the road.
[1] https://www.europarl.europa.eu/doceo/document/E-9-2022-003632_EN.html https://www.europarl.europa.eu/doceo/document/E-9-2022-00363...
- skybrian 4y agoThe long term effects seem harder to judge. Fertilizer imports likely increased. Some farmers likely started using fertilizer more effectively because higher prices encourage investment in efficiency improvements (reduced waste). Also, perhaps some factories will reopen.
- paganel 4y ago> Fertilizer imports likely increased. Presumably at higher prices, otherwise the European plant fertiliser industry wouldn't have been in active the first place. > higher prices encourage investment in efficiency improvements As far as I can understand agribusiness is already highly efficient, not sure it can make up for a double-digit decrease in availability (or increase in prices) for one of its core inputs.
- mantas 4y agoAlso, guess who is one of the bigger fertilizer manufacturers? Russia & Belarus. For example Belaruskali. Wonder how much of re-badged fertilizer will make it into EU...
- mantas 4y agoLooking at youtube farmers I follow... They reduced usage of fertilizer in exchange for lower yield. In the bottom line, they made as much profit due to higher prices and less expense. But for consumers it means raised prices. Food processing industry will have problems with sourcing raw material. Exports will drop and internal consumption will be more expensive for several years.