European Union is on the verge of an agricultural disaster
The sanctions imposed by Western countries against Russia and the failure of foreign logistics operators to fulfill their obligations to deliver mineral fertilizers from Russia to their consumers may lead to a temporary suspension of the Russian exports and negative consequences for the European Union, said the information and analytical service of Fertilizer Daily.
“As soon as shipments from Russia stop, the European Union may face a shortage of mineral fertilizers and their prices will rise sharply. Yara International, K+S Group, CF Industries, Grupa Azoty and other producers will not be able to fully meet the demand, especially since some of them reduced the production of mineral fertilizers last year due to the high cost of natural gas,” commented the information and analytical service of Fertilizer Daily.
It’s unlikely that European farmers will be able to purchase sufficient volumes of mineral fertilizers: North American companies must first fulfill their obligations under contracts to farmers in the United States and Canada. Moreover, sales to Latin America, which is highly dependent on imports, may be more interesting for them than to the more distant European Union. Options to purchase mineral fertilizers in Africa of Asia are extremely limited.
“As a result, the lack of mineral fertilizers in the European Union may lead to a drop in the yield of cultivated crops.In turn, this will lead to a rise in the food prices and, possibly, food shortage for the population of the European Union. Thus, the economic war unleashed by the European Union against Russia may lead to an agricultural disaster in its countries,” Fertilizer Daily assumes.