We have actually previously warned about a tremendous food crisis and supply issues in the fertilizer market. Well, now is even worse because that was prior to we had the gas crisis. Why is that crucial?
Gas is THE critical input into making fertilizer. Urea is essentially ammonia in strong state, the procedure of which entails reacting ammonia with CO2. And we all now know– thanks to the environment nazis– that CO2 is currently the devil. The problem of course is that without any natural gas there is no urea, and without any urea there is no fertilizer. And with no fertilizer … well, we will eat each other.
Here are the area urea prices.
Something else that we had actually noted some time back(in Korea) however which now looks like a bigger problem.
Here is an article about an Australian farmer who warns the urea supply crisis might halt normal life within weeks.
Here’s what he says:
‘Not only will we not be able to grow livestock and we will not have the ability to grow food and we will not be able to grow grain or anything like that, however even if we could, we can’t move it, because we can’t turn a wheel in a truck since we have no Adblue,’ [AdBlue is required for diesel automobiles– half of all trucks on Australian roads operate on diesel
As of February we may not have a truck on the road in Australia, we may not have a train on the tracks.
‘So quite literally the whole nation comes to a grinding halt since February.’
The farmer then, goes on to say:
‘Go and have a look in your cabinet and go and have a look in your refrigerator and I guarantee almost every single product there, at some time, urea has actually been used to produce that product, whether it’s a steak or a salad or a can of baked beans.
Relocating to Europe, we have actually a complete blown energy crisis unfolding there, intensified by increasingly more damaging policies by the pointy shoes (let’s produce more solar and wind when it’s shown to be both inadequate and massively expensive) and a supply chain crisis.
Take a look at European energy prices.
So here we’re now experiencing the beginnings of what promises to be a storm. Think cold and starving and you’ve got the right image.
That electrical power comes largely from gas, and that natural gas comes from those peaky Russkies.
European Gas Prices Surge Above 100 Euros With Eyes on Russia.
Europe’s benchmark gas cost increased above 100 euros, or $190 per barrel of oil equivalent, ahead of a series of auctions for pipeline capability that are seen as a test of Russia’s desire to ease a supply crunch.
The day-ahead auctions for area on Ukrainian pipelines and capability at Germany’s Mallnow compressor station will supply a strong signal for how serious Russia has to do with increasing flows to the west. While the region’s greatest provider has said it intends to keep filling up European storage sites till the end of December, it hasn’t utilized short-term auctions to deliver more fuel.
So right now we have this circumstance which is going to make your head spin. Europe runs out gas. They have actually spent the lion’s share of the last decade eliminating their own domestic energy, replacing it with baubles and toys, which, while scoring big on the woke scorecard, have actually proven abysmal at producing … well, electrical power.
With Europeans now cold and extremely quickly hungry we are due for a war. Keep in mind that traditionally, the spiraling food rates have triggered civil discontent, transformations, and wars. On the plus side, it has actually been understood to likewise cure obesity, so there’s that.
Back to urea and food. You can’t make fertilizer without urea and gas. As the rate of either of these goes higher (both are), it considerably affects the rate of fertilizer. The price of fertilizer impacts in turn the price of food. This is due to the fact that fert is the 2nd biggest cost element of most agricultural production. The first being … you guessed it, diesel.
We now have a bull market not simply in urea, however in gas, and to top it off in diesel too.
To expect food costs to remain stable when the components to producing it are all soaring higher impresses us as comically stupid.
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