Global crop yields are expected to drop by 50% due to fertiliser shortages driven by the war in Ukraine, a major fertiliser company has warned.
Yara International, which buys raw materials from Russia, claimed that prices were already high due to surging wholesale gas prices, but were expected to drastically worsen.
The Norwegian-based fertiliser company’s chief executive officer Svein Tore Holsether explained that additional disruption to the supply chains coupled with the seasonal demand would complicate distribution.
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As Russia produces a quarter of fertiliser key ingredients for European food production such as potash and phosphate, the supply chain is “quite likely to be impacted.”
“Half the world’s population gets food as a result of fertilisers… and if that’s removed from the field for some crops, [the yield] will drop by 50%,” Holsether said.
“For me, it’s not whether we are moving into a global food crisis – it’s how large the crisis will be.”
The warning comes as the Russian government has called producers to cease fertiliser exports.
On top of this, Yara relies on Russian exports of gas for its European plants, to produce ammonia for nitrogen fertiliser.
Holsether added: “On the one hand, we’re trying to keep fertiliser flowing to the farmers to keep up the agricultural yields.”
“At the same time… there has to be a strong reaction. We condemn the Russian military invasion of Ukraine so this is a dilemma and one that frankly is very difficult.”
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