Yara warns of food supply risks, as urea prices surge 54%

Yara International CEO Svein Tore Holsether warns that farmers face a severe financial squeeze. Input costs for farmers have surged significantly while crop prices remain stagnant.

This imbalance threatens to reduce fertilizer application across the industry. Lower usage could decrease global crop yields and destabilize the food supply.

Conflict in the Middle East serves as the primary driver for the price surge. The unrest disrupted natural gas supplies and logistics essential for fertilizer production.

Benchmark urea prices jumped 54% in the last month alone. Holsether warns that reduced fertilizer use now will cause irreversible harvest losses in the future.