Food Production in Danger as Nitrogen Fertilizer Supplies Drop

CF Industries, a major producer of nitrogen fertilizer, says high natural gas prices caused a shortage in the product, threatening reduced crop yields next year. Natural gas prices in Europe have reached record levels amid high demand. Nitrogen-based fertilizer production need natural gas, and high gas prices caused some producers to cut production.

CF Industries’ CEO Tony Will stated that because of scarce supplies, there was going to be a lot of unmet demand which will result in global crop yields to reduce next year. Nitrogen fertilizer prices have climbed to a ten year record. The product is commonly used for corn and canola production, among other crops.

Last month, Norwegian fertilizer producer Yara International made a similar statement, saying high fertilizer costs could drive food prices up and cause famine.

Both Russia and China have already decided to limit nitrogen fertilizer exports to prevent further increase in food prices.

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