World Facing Food Crisis

 EVERYTHING IS GOING SWIMMINGLY: 

‘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.

When natural gas prices surged last year after Russia invaded Ukraine, so did prices for fertilizer, which manufacturers such as Yara produce with ammonia and nitrogen obtained as a byproduct from natural gas. Fertilizer prices had already begun increasing in 2021 due to high energy costs and supply-chain issues.

Declining natural gas prices and weak demand among farmers have eased pressures somewhat over the past few months. Earlier this month, fertilizer prices fell to their lowest level in nearly two years in tandem with natural gas prices. But despite falling prices, Holsether insists that the global fertilizer market is precarious, and countries should shift from relying on Russian natural gas, to safeguard their agricultural industries.

“Putin has weaponized energy and they’re weaponizing food as well,” Holsether told the BBC at last week’s World Economic Forum in Davos, Switzerland. “It’s the saying, ‘Fool me once, shame on you. Fool me twice, shame on me.’”

Fertilizer prices remain high by historical standards, and the World Bank warned earlier this month that global supply is still tight due to the war, production cuts in Europe, and stricter export controls in China.

Trade is great. But putting US workers in competition with Third World wages hasn’t been great for them or for domestic manufacturing. And depending on potentially hostile and/or unstable regimes for vital inputs is just stupid.

UPDATE (FROM GLENN); Related: Looming food shortages is the next ‘slow-moving disaster’ to hit world. Not by accident.

175Posted at 9:40 am by Stephen Green   

K