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Food Costs Risk Surging as Europe Cuts Fertilizer Output

  • Norway’s Yara reduces production from plants in Italy, France
  • Hungarian Nitrogenmuvek halts output, Borealis considering it
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European fertilizer makers, including Yara International ASA and Borealis AG, are cutting output because of surging natural gas prices, adding to the growing risks for global food inflation.

Russia’s invasion of Ukraine has roiled commodities markets and propelled natural gas -- the feedstock of nitrogen fertilizers  -- to record levels. That’s forcing producers to curb ammonia output, pushing up farm input costs and adding to the risks of a worldwide food shock.