According to the CEO of a large fertiliser company, a global lack of fertilisers is pushing up food costs and putting poorer nations in jeopardy.
Higher gas prices, according to Svein Tore Holsether, CEO of Yara International, are driving up fertiliser costs and hurting food prices throughout the world.
Fertilizer manufacture needs a big quantity of gas.
Due to increasing gas prices, Yara was compelled to decrease some output, causing shortages, according to Holsether.
The shortages will be most severe in underdeveloped nations, according to the CEO, with agricultural yields dropping and food costs soaring.
“It’s really scary, we are facing a food crisis and vulnerable people are being hit very hard,” he said in a television interview.
“It’s impacting food prices all over the world and it hits the wallets of many people. But for some people, especially in the developing world, this is not only a question about the wallet, but it’s a question of life or death.”
Farmers in underdeveloped nations would be unable to plant as effectively as they might with less fertiliser, according to Holsether, resulting in lower yields.
Fertilizers are used by farmers to increase the yields of crops including maize, canola, and wheat. Hydropower or natural gas are now used in the production of ammonia, which is used in many fertilisers.
Gas prices have risen in recent months as a result of numerous reasons that have raised demand, including the opening of economies during the epidemic and decreasing wind or rain for renewable energy.
As a result, the cost of creating fertiliser has risen dramatically, with the price of ammonia, which Yara International produces more than anybody else in the world, up 255 percent year on year.
According to Holsether, the situation is “extremely fragile,” and the World Food Programme needs help and resources “to avert severe starvation.”
He said that Yara provided 40,000 tonnes of fertiliser last year, which enabled small-scale farmers in East Africa to triple their crop output.
“It says a lot about the impact that fertiliser can have,” he added.
(Adapted from BBC.com)