Emerging fertilizer crisis a threat to global food security.

Byline: Shabbir Kazmi

In Europe, the high nutrient prices have farmers questioning whether to curb plantings. Canadian authorities cautioned that growers may cut back on usage, while in corn powerhouse Brazil, there's a risk that soaring fertilizer costs and less supply will limit crop yields.

The global fertilizer market had already been tightening before plants were forced to cut production on the back of the recent spike in the cost of gas, a key feedstock. That's sent prices of nutrients crucial for growing staples soaring - to a record in some cases - risking smaller harvests or even more expensive food down the line.

Fertilizer plant shutdowns in the UK highlighted how critical the situation is, because it cut off supplies of carbon dioxide, a byproduct that's needed for everything from slaughtering animals to packaging food. A deal was struck this week to maintain output in the coming months, averting more chaos for the sector.

The risk is that it's just a quick fix. The owner of the British plants, CF Industries, said that CO2 users need to look for new sources of supply. An industry group also warned that temporary fertilizer-plant closures in Europe could become permanent.

It's a worrying sign for future harvests a time when global food prices are at a 10-year high. There are concerns that farmers in France, the European Union's top wheat grower, may find it hard to source fertilizers next spring, regardless of the price.

In Brazil, where a lot of farmers haven't secured their fertilizer needs or locked in prices yet, worries of non-delivery are increasing. President Jair Bolsonaro has said the nation faces the risk of fertilizer shortfalls next year due to falling Chinese output in the wake of high energy costs.

Europe's energy crunch is spreading to fertilizer industry and threatening meat sector, risking higher prices. Norwegian fertilizer maker Yara International ASA on Friday said record-high gas prices are hurting its production, and by next week will have curtailed about 40% of its European ammonia output capacity. That comes after CF Industries Holdings Inc. said it's halting two UK plants due to soaring energy costs.

Shutdowns also risk hitting other parts of the food supply chain by crimping supplies of carbon dioxide, which has a wide range of uses from stunning animals for slaughter to food packaging that boosts shelf life.

Fertilizer prices jumped in the past year as a crop rally helped farmers boost purchases of the...

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