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Transcript

Yara International ASA is a Norwegian chemical company. Its largest business area is the production of nitrogen fertilizer, however it also encompasses the production of nitrates, ammonia, urea and other nitrogen-based chemicals

Russia and Ukraine are world powers in agriculture and food production:

  • Ukraine is one of the world’s leading agricultural nations and the world’s second biggest within grains. The farmers are now entering a crucial stage in the agricultural season in which input factors such as fertilizer, seeds and water will determine the yield of the coming harvest. The most extreme calculations indicate that if fertilizer is not added to the soil, the crops can be reduced by 50% by the next harvest.
  • In addition to being one of the largest producers of wheat, Russia has enormous resources in terms of nutrients.

Food is the essence of geopolitics. There is no more basic human need than securing access to food and water, and, as a result, there is no more important geopolitical imperative for national governments than to ensure their people do not starve. A government that fails to provide food security will not stand long.

The World Bank highlighted that even though the current food supply is stable, food prices increase in most countries in the world. In 2020, around 800 million people went hungry to bed, representing an increase of 120 million people from 2019. The war threatens to reinforce this development