This summer, the United States saw a significant increase in its exports of nitrogen fertilisers as rising natural gas prices in Europe increased the cost of generating the crop nutrient there and made U.S. supplies more competitive.
The rapid U.S. sales demonstrate how the conflict in Ukraine has had a significant impact on world food and energy supply. Under financial restrictions, Russia is a significant provider of fertiliser and natural gas, which are essential in creating nitrogen compounds to increase corn and other crop yields.
Following Russia’s invasion of Ukraine in February, Europe began weaning itself off of Russian natural gas, and a pipeline carrying ammonia from Russia to a Ukrainian port was closed.
The price of crop nutrients has increased due to limited fertiliser supplies to the point where the United Nations issued a warning this month about a ‘potential availability dilemma.’ Due to exorbitant expenses, European businesses were obliged to shut down some fertiliser factories.