European Fertilizer Output at Risk Amid Soaring Gas Costs

AGF Nitrogen, Europe's second-largest fertilizer producer, is considering reducing ammonia production due to high natural gas and carbon costs. The rising expenses have pushed ammonia and fertilizer prices beyond what European farmers can afford.

The company's CEO, Petr Cingr, warned that the situation could threaten Europe's agricultural sector and food security. He noted that ammonia production costs are directly linked to natural gas, energy, and carbon emissions allowances, which remain elevated.

European farmers have already started reducing fertilizer purchases due to affordability concerns. Lower fertilizer application could negatively impact crop productivity, highlighting the potential consequences of a prolonged decline in fertilizer consumption.