The Ukraine war will be a major blow to global food supplies. Food prices will increase. Yara International, one of the world’s largest fertilizer manufacturers, is concerned. News from the BBC.
The head of Norwegian-based Yara International, Wayne Tore Holcether, told the BBC on Monday that fertilizer prices had skyrocketed due to high gas prices even before Russia invaded Ukraine; Which is still growing.
He warned that more difficult situations might arise.
Russia produces large quantities of important fertilizers such as potash and phosphate. It takes fertilizer to grow crops. If the price of fertilizer goes up, it will affect the price of food.
Many fertilizer companies, such as Yara International, depend on Russia for potash and phosphate. In addition, it takes a huge amount of gas to make fertilizer like ammonia. Yara International’s European plant is largely dependent on Russian gas. The company exports their fertilizers to 70 countries.
“We’ve been in a difficult situation since before the war,” said Holstein. Now there is extra pressure on the supply system. “In my opinion, it’s not just a global food crisis that we’re heading into, it’s a matter of how big the crisis will be,” he said.