As winter approaches, the energy crisis will affect the global recovery. Government. & Politics

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Meanwhile, some gas-dependent European industries are curbing production. German chemical companies BASF and SKW Piesteritz have reduced production of ammonia, an important component of fertilizer.

As a result, Hermann Greif, a farmer from the village of Pinzberg in the Bavarian region of southern Germany, unexpectedly came up empty the following year when trying to order fertilizer.

“There is no product, no price, no contract. This is a situation we have never seen before,” he said. One thing is certain: “If you don’t give your crops the food you need , then you will get less yield. It’s that easy.”

Graff said higher energy prices have already affected farmers in areas that need diesel to run machinery and heat to keep animals warm.

Similarly, in Italy, energy costs for processing wheat and corn are expected to increase by more than 600% in the three months to December 31, according to the Grain Inspection Association. It involves turning wheat into flour and corn into cattle and pig feed.

Energy consultant Giampietro Scusato, who negotiates contracts with the AIRES Association and others, expects volatility and higher prices to continue next year.

Higher energy prices can also enter bread and pasta production through transportation costs and the use of electricity, ultimately affecting store prices. The dairy and meat sections are particularly exposed, as prices are currently low and farmers may be forced to pass on high animal feed costs to shoppers.

As winter approaches, the energy crisis will affect the global recovery. Government. & Politics

Source Link As winter approaches, the energy crisis will hurt the global recovery. Government. & Politics

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