Yara International ASA, Europe’s largest fertilizer maker, said in an interview with Bloomberg that it has averted supply shortages in recent months, despite curbing production capacity. Numerous European fertilizer plants were forced to shut in 2022 as costs surged for natural gas. However, prices began to retreat late last year, helping Yara keep operating approximately 57% of its ammonia production capacity as of the third quarter, versus 35% it had warned about in August.
European farmers spread most of their fertilizer for the growing season in spring.
“I’m not aware of any significant shortages that we had in the last few months,” Yara CEO Svein Tore Holsether said. “We’re working around the clock to make sure we can supply to as large extent as possible for this season as well.”
Warm winter weather sent European gas prices to a one-year low last week, although he cautioned “how quickly that can change.” The company also has to weigh other factors before restarting operations, as it is expensive to stop and start plants. Yara will give its next capacity outlook in February.
It has also called for joint action to reduce fertilizer and food dependency on Russia following the outbreak of the war in Ukraine and stopped sourcing potash from Belarus, formerly its key supplier, in line with sanctions. Still, Belarusian potash is finding its way into markets through different channels and routes, he said.