Yara ammonia production in Europe ‘back on stream’
Fertiliser giant Yara has said that ammonia production in Europe is now “back on stream” following a decision to scale back manufacturing.
In September, the Norwegian company announced that it would be cutting 40% of its European ammonia production due to record natural gas prices on the continent.
In a statement released today (Wedneday, December 15), Yara gave an update on its production levels, which showed that the cutback was less than what was forecasted.
“Record high natural gas prices led Yara to curtail ammonia production at a number of its plants in Europe in September.
“Including planned maintenance and unscheduled outages, Yara’s European ammonia production has been approximately 30% below capacity from September to November,” the company stated.
The company said the impact of the cutback on finished fertiliser production has been limited.
It explained that “unprofitable ammonia production has been replaced with sourcing from Yara plants outside Europe, and from Yara’s global ammonia trade and shipping network”.
Currently most of Yara’s ammonia production in Europe is back on stream, the company stated.
Yara said it will continue to monitor the situation, “with the objective to keep supplying customers but curtailing production where necessary”.
Yara has multiple bases on the island of Ireland, with two sites near Belfast in Northern Ireland, and a site in Ringaskiddy, Co. Cork, for bagging and distribution.
The update comes as Irish farmers are continuing to face spiraling fertiliser costs.
The Central Statistics Office (CSO) has said that fertiliser prices have increased by 52% in a year.
The agricultural input price index for October 2021, which excludes VAT, shows that fertiliser prices jumped by 15.8% in a month.
In the year up to the end of October, the CSO said that straight fertiliser prices rose by 64.5% and the cost of compound fertilisers increased by 49.6%.
Writer: Aisling O’Brien