The energy crisis is impacting the energy-intensive industries in Europe. The current energy crisis has caused the production interruption of many large chemical fertilizer enterprises in Europe! Ammonia capacity in Europe has shrunk further, with more cuts expected. In July alone, 10 fertilizer plants in Europe closed or reduced production, and the situation continues to get worse from now on. As many as 70 percent of European ammonia plants have cut or shut down production in recent months due to record high energy prices, according to Russian fertilizer sources. Concerns are growing that there won't be enough fertilizer next year.
That means around 38% of capacity in Europe for key fertilizer feedstocks is now cut or cut entirely, said Chris Lawson, an analyst at research house CRU Group. Moreover, fertilizer manufacturers Yara International, K+S AG, Borealis AG and Fertiglobe Plc have recently warned that Europe will further limit fertilizer production. European farmers may choose to increase imports to make up the shortfall in order to meet the amount of fertilizer they need, which could have a knock-on effect in other parts of the world. If European farmers import more fertilizer products from other exporters, that could worsen more vulnerable agricultural markets in sub-Saharan Africa, South Asia and parts of Latin America and strain global food markets.
The U.S. Department of Agriculture recently released the report "The Impact and Consequences of Price Rise on the Global Fertilizer Market", and the International Fertilizer Industry Association (IFA) released the "Medium-term Fertilizer Outlook 2022-2026" report. Both reports predict global fertilizer supply in the next two years Pressure still exists, fertilizer prices will remain high
