The global food shortage is about to explode into a full-blown crisis that will lead to pockets of mass starvation and will even affect first-world countries around the globe.
That’s because the vast majority of ammonia production in Europe, which is a key ingredient in the production of fertilizer, has been taken offline, according to reports, thanks to the spiraling cost of natural gas.
Most of the continent’s liquified natural gas (LNG) came from Russia, but after the invasion of Ukraine, Western nations began sanctioning Moscow and that included ending purchases of inexpensive energy. As such, LNG prices have skyrocketed on the European continent, making ammonia production too costly.
“Ammonia prices, though volatile, rose 15% in 3Q and could climb higher as Europe’s record gas prices curtail output and send ammonia producers to the global market in search of replacement supplies to run upgrade facilities — with winter still around the corner,” Bloomberg Intelligence’s Alexis Maxwell wrote in a note.
According to Fertilizers Europe, which represents the top regional producers, as much as 70 percent of production is now offline, and that is certain to exacerbate the existing food shortages.
“The current crisis begs for a swift and decisive action from EU and national policymakers for both energy and fertilizer market,” Jacob Hansen, director general of Fertilizers Europe, said in a statement.
Producers including Yara International ASA, CF Industries, and Borealis AG in Norway recently dramatically curbed or even halted production after European LNG prices rose to a record 343 euros per megawatt hour, which exceeded the plants’ ability to economically produce their product.
“We confirm we are reducing and stopping production of some fertilizer plants in the different EU sites and this for economic reasons,” a spokesperson for Borealis AG said.
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The benchmark natural gas price in Europe soared again by nearly one-third as Russian supplies to Europe through the Nord Stream 1 pipeline were cut to just 20 percent over the summer and now face a temporary halt for three days beginning Aug. 31.
Meanwhile, the regional fertilizer association is now warning as well that the shortage of ammonia production will impact several sectors across the European economy, but food will be impacted the most, of course.
“We are extremely concerned that as prices of natural gas keep increasing, more plants in Europe will be forced to close. This will switch the EU from being a key exporter to an importer, putting more pressure on fertilizer prices and consequently affecting the next planting season,” Maximo Torero, chief economist at the United Nations Food and Agriculture Organization, said.
The closure of fertilizer producers across Europe lifted Mosaic and CF Industries as some of the top advancers in the S&P 500 Index on Friday, rising 16% and 15%, respectively, on the week.
Bloomberg Intelligence’s Maxwell said “cascading supply-side shocks” could keep fertilizer prices elevated well into 1H23 and may pressure farmers in the upcoming growing season, adding to even more food inflation as less fertilizer equals smaller harvests.
In addition, the outlet reminded readers that in recent months, the world’s largest fertilizer company — Canada-based Nutrien Ltd. — warned that shortages of the product will most likely extend into 2023.
CEO Ken Seitz told investors in May that “the conflict plus Western sanctions on Russia and Belarus has reduced fertilizer supply on global markets and could reshape crop nutrient trade, thus creating even more supply uncertainty,” Zero Hedge reported separately.
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It is becoming more obvious that the global food shortage is about to explode into a global food crisis, as a lack of fertilizer production leads to fewer acres planted and, of course, less food cultivated, grown, and produced.
The world is on the edge of a food catastrophe, and we can thank the lockdowns and Russia’s invasion of Ukraine for it.
Will America-First News Outlets Make it to 2023?
Things are looking grim for conservative and populist news sites.
There’s something happening behind the scenes at several popular conservative news outlets. 2021 was bad, but 2022 is proving to be disastrous for news sites that aren’t “playing ball” with the corporate media narrative. It’s being said that advertisers are cracking down, forcing some of the biggest ad networks like Google and Yahoo to pull their inventory from conservative outlets. This has had two major effects. First, it has cooled most conservative outlets from discussing “taboo” topics like Pandemic Panic Theater, voter fraud, or The Great Reset. Second, it has isolated those ad networks that aren’t playing ball.
Certain topics are anathema for most ad networks. Speaking out against vaccines or vaccine mandates is a certain path to being demonetized. Highlighting voter fraud in the 2020 and future elections is another instant advertising death penalty. Throw in truthful stories about climate change hysteria, Critical Race Theory, and the border crisis and it’s easy to understand how difficult it is for America-First news outlets to spread the facts, share conservative opinions, and still pay the bills.
Without naming names, I have been told of several news outlets who have been forced to either consolidate with larger organizations or who have backed down on covering certain topics out of fear of being “canceled” by the ad networks. I get it. This is a business for many of us and it’s not very profitable. Those of us who do this for a living are often barely squeaking by, so loss of additional revenue can often mean being forced to make cuts. That means not being able to cover the topics properly. Its a Catch-22: Tell the truth and lose the money necessary to keep telling the truth, or avoid the truth and make enough money to survive. Those who have chosen survival simply aren’t able to spread the truth properly.
We will never avoid the truth. The Lord will provide if it is His will. Our job is simply to share the facts, spread the Gospel, and educate as many Americans as possible while exposing the forces of evil.
To those who have the means, we ask that you please donate. We have options available now, but there is no telling when those options will cancel us. We have our GivingFuel page. There have been many who have been canceled by PayPal, but for now it’s still an option. Your generosity is what keeps these sites running and allows us to get the truth to the masses. We’ve had great success in growing but we know we can do more with your assistance.
Thank you, and God Bless!