Starting Shit with Everyone–Literally
There’s a major problem with fertilizer companies in continental Europe. Due to the economic sanctions on Russia, misallocation of investments and a endless regulation to investment markets in the energy space, gas prices have made it uneconomical to continue to produce fertilizers. Many companies have completed shut down or are only operating at partial capacity leaving the Europeans with the options of no food, or imports from the United States.
This is the danger of big government intervention and so-called “climate friendly” policies–they are nothing more than anti-business and anti-private property methods to garner further state control of the economy similar to Soviet methods. Ironically for the Europeans, they are losing control given their reliance on foreigners, high prices, and a further destabilized population
Click HERE if you want to delve into this further
At least 50 large fertilizer production facilities have closed throughout Europe within the last couple of years. This is stated in a report by Mitsubishi UFJ Financial Group (a major financial group among the world’s top ten). It’s estimated around 75% of the cost of nitrogen fertilizer is the cost of gas.
Again, playing politics has caused the rejection of cheap oil & gas from Russia, affordable potash from Belarus & stable supply chains. The shut down of production facilities is a major strike to European farming which is critically needed for local agriculture.
The current production levels are so low, it will force Europe to buy fertilizer or grain early into 2024, at a higher than usual price no doubt. Of course, the United States are licking their lips as this means a customer is locked in place–I wonder who blew up that pipeline in the North Sea?
As you can see below, production has halted or is only operating partially.
Apologies the photo is kinda of crappy.
But the Europeans still continue with mindless headlines like this:
The Europeans are going to play politics and kill their own population (not to mention the Africans who are totally dependent on food imports).
CEO of Yara International (major fertilizer and gas supplier in Norway) says:
A perfect storm for the whole food system right now’: One of the world’s largest fertilizer companies warns that every country—even those in Europe—is facing a food crisis
Guess they’re going to have to go back to manure and suffer a tremendous cut in farming yields, that is, when the French aren’t praying it at parliament.
When food becomes a problem around the world, blame Brussels. Till then,
#StayOnTheBall
