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Agriculture · Commodity Prices · Fertilizer · Global Food Security
Norwegian fertilizer giant Yara International ASA warns farmers face severe pressure from a 54% surge in urea prices over the past month, driven by Middle East conflict, threatening global food production as farmers scale back purchases.
Yara CEO Svein Tore Holsether stated in a Wall Street Journal interview that input costs have sharply increased, while crop prices have not kept pace. The conflict in the Middle East has disrupted logistics and the supply of natural gas and other essential raw materials, fueling the price rally.
Yara anticipates a softening in demand as farmers adjust crop rotations to protect margins. Reduced fertilizer application, however, risks diminishing future crop yields, impacting the global food supply.
