The Association of European Fertilizer Manufacturers is asking the EU for help due to high gas prices

By: STA Date: 2022. 09. 02. 21:43

According to Fertilizers Europe, much of European fertilizer production has been forced into temporary or complete shutdown due to exploding gas prices, which are more than 1,000% higher than a year ago.

EU help would solve many problems within the sector (Photo: Pixabay)

According to the press release of the Brussels-based lobby group on August 26, the price of natural gas in Europe is much higher than in the United States, and the price difference is even greater in the case of different fertilizer industry centers. This results in European producers not being able to compete on the internal and world markets. – Urgent and decisive EU-led crisis management measures are needed to restore fertilizer production, as securing the EU’s strategic autonomy in the field of fertilizers is crucial. This is the only way to guarantee long-term food security! The situation on the European gas market plunged the entire fertilizer industry into crisis. Record high gas prices, which account for 90% of the industry’s production costs, are making it impossible for European fertilizer plants to remain competitive. As a result, the European production capacity was reduced by more than 70%. If the situation continues like this, even functioning economies will be in danger. The emerging crisis would require quick and decisive action on the part of the EU and national decision-makers in both the energy and fertilizer markets. – said Jacob Hansen, CEO of Fertilizers Europe.

The problems must be solved within the EU

The current gas market measures must be reviewed, – in order to support fertilizer factories within the EU and to restore market confidence. – Political decision-makers must seriously consider the crisis management policy of the fertilizer industry in order to reduce the long-term negative effects on the EU’s food security – emphasized the Director General, who added that “the solution to reducing dependence on Russian energy and raw material supply is not to close We are moving factories, plants and jobs outside of Europe.” The head of the industry emphasized that the EU “needs a strong internal fertilizer industry so that farmers can continue to produce food”.

NAK