The energy ministers of the EU countries are convening for an emergency meeting due to the energy crisis, possibly as early as the end of this week. Rising gas prices are causing the closure of an increasing number of fertilizer factories, threatening to leave European agriculture without fertilizer.
Last week, two Polish fertilizer producers, Azoty and Anwil, decided to halt production. The Norwegian company Yara, which also has a facility in Sluiskil, has partially suspended production. This decision came less than 24 hours after the largest fertilizer factory in the United Kingdom stopped operations. Approximately two-thirds of European fertilizer production is now halted due to high gas prices.
Europe imported nearly 40% of its fertilizer from Russia. Mineral fertilizers are used for nearly half of food production. Many farmers are simply no longer able to afford the currently extremely high prices.
Polish agricultural organizations have raised the alarm, stating that food production will come to a halt this autumn. They point out that CO2 is a byproduct of fertilizer production, which they need as an anesthetic in many Polish pig slaughterhouses.
The high gas prices are a direct consequence of European sanctions against Russia due to the war in Ukraine. Putin is funding that war with the profits from selling his oil and gas. For that reason, the EU countries decided to no longer purchase Russian oil and to get off Russian natural gas as quickly as possible.
However, reducing Russian imports will take several years until EU countries have found other suppliers and alternatives have been developed.
The ministers also decided in June that EU countries must fill their winter reserves ‘at all costs’ as much as possible ‘so that we are not left in the cold if the Russians cut off supplies.’ In response, Russia has already restricted deliveries to EU countries, causing gas prices on the international markets to rise sharply.
Due to shrinking fertilizer supplies, prices will remain high, which could pose a threat to food production if farmers are forced to produce less due to the unavailability of fertilizer. This also threatens to make food even more expensive for consumers.