Due to restrictions on imports of fertilizers from Russia and Belarus and the resulting deficit in Europe is expected to further increase the price of agricultural products, according to Deutsche Wirtschafts Nachrichten. As the magazine notes, the withdrawal of Russian nitrogen and complex fertilizers and Belarusian potash from the market will lead to a decrease in their use, and ultimately to a decrease in the yield of crops.
Because of the Ukrainian crisis, the European Union has restricted imports of mineral fertilizers from Russia. As a result, German farmers expect further price increases for agricultural products and expect supply shortages to worsen. The situation is likely to continue at least until the new harvest in 2023 – if not longer, Deutsche Wirtschafts Nachrichten reports.
Last year, the EU imported 4.6 million tons of nitrogen and complex fertilizers from Russia. Consumption of mineral fertilizers across Europe totaled about 13 million tons. In addition, one of the largest sources of potash fertilizers was Belarus. However, their reserves have also dried up.
In addition, as the publication notes, the sanctions also affected the fertilizer plants in the EU, owned by Russian oligarchs, such as Eurochem, which is headquartered in the Swiss city of Zug.
And, to the dismay of farmers and end users, with the start of the conflict in Ukraine, the already high producer prices for mineral fertilizers in the EU continued to rise.
The production of mineral nitrogen fertilizers requires a lot of energy. Natural gas is primarily used – production is concentrated around the world in places with available cheap energy sources, such as Russia. If these fertilizers are withdrawn from the market, this will lead to a decrease in their use and, ultimately, to lower grain yields. In Germany alone, experts expect a drop in yield of 3 million tons, writes Deutsche Wirtschafts Nachrichten.
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