Norwegian fertiliser manufacturer Yara, which also produces AdBlue, has called on the EU and its member states to use a crisis reserve fund to make sure fertiliser is available.
It says the funds should be used to ensure the supply of natural gas, a key raw material required for manufacturing fertiliser.
The Oslo-based chemical manufacturer made the plea in a position paper, Ukraine invasion: Addressing food, fertiliser and AdBlue supply risks, which it published last week.
Meanwhile, at the end of April, Yara reported that its first quarter operating margin for 2022 has grown from 10.2% to 14.5%.
As part of its position paper on the impact of the war, Yara said it is “extremely concerned about the grave situation which is now unfolding in Ukraine” and highlighted that it has employees in the areas impacted by the war and that its office in Kyiv has been hit by a missile.
A Yara spokesperson said that the Covid-19 pandemic and increased European gas prices have, however, “exposed the weaknesses in the food system and the urgency for change”.
They said the company’s “operational crisis team” is “working to adjust our production system by seeking other sources of raw materials to remain in full compliance with the sanctions against Belarus and Russia”.
While Yara does this, the spokesperson stressed the “urgent need to improve the resilience and sustainability of the food system” and explained that “this is why we are calling the European Commission, EU member states and the Norwegian government alike to protect the global food production and work together to decrease dependency on Russia”.
‘Duty to monitor’
Yara claimed that the Commission and member state national governments “have a duty to monitor the availability of fertilisers, AdBlue and chemical reagents, and prevent shortages”.
The fertiliser company said that this should involve ensuring continued, undisrupted access to natural gas as it is the “critical input factor for nitrogen production”.
Yara wants member states to “assign funds for fertilisation under the crisis reserve” and stresses that “it is essential that farmers feed their crops with the nutrients necessary to reach their maximum genetic growth potential”.
Yara also pointed out that “virtually all modern diesel vehicles and machinery” need AdBlue to function. Yara is Europe’s leading manufacturer of the chemical product.
The spokesperson included AdBlue, and the raw materials required for its production, as more of the products who’s supply it is concerned over.