Fuel prices in the UK have brought the fertilizer producer to liquidation

It became known about the closure of the largest British enterprise, whose specialization was the production of nitrogen fertilizers. The Ince plant, located in the vicinity of Chester, could not bear the tax burden associated with environmental protection, as well as the increase in gas prices.

The operation of the enterprise was suspended in September 2021. It was then that gas prices in the country began to rise sharply upwards. Now CF Fertilisers, the company that owns the plant, has decided on its final liquidation. This was reported last week by The Telegraph.

It is reported that the complete liquidation of the plant may disrupt the existing logistics chains. This may negatively affect the work of farms and the entire food market in the United Kingdom. Deputy Head of the National Farmers Union (NFU) Tom Bradshaw called the incident a blow to those farmers who are already struggling with the increase in the cost of fertilizers.

According to him, the liquidation of Ince will lead to limited supplies and unprecedented risks for British farmers.

The company itself clarified that the second fertilizer producer, located in Billingham, will continue to work. CF Fertilisers representatives believe that the plant has all the necessary resources to continue working in 2022 with the same volume of output that both enterprises produced until the fall of 2021. However, the NFU requires to provide some evidence or guarantees for this.

NFU experts warn that the current level of the cost of fertilizers can completely turn farmers away from the desire to grow wheat needed for the production of bread. The price of fertilizers during the pandemic increased from £200 to £625 per ton.

According to the head of the NFU, Minette Butters, grain producers in these conditions will inevitably go to reduce production. It is especially tragic that this will happen in conditions of high demand of the UK food market for milling wheat. According to economists, Russia and Ukraine supplied about 30% of wheat to the world market. It will be very difficult to fill the gap with grain supplies that has formed against the background of the military conflict.

British experts emphasize that the shortage of nitrogen fertilizers can affect not only the price of bread, meat and milk on store shelves.

They pay attention to carbon dioxide, which is a by-product of closed production. Its shortage may affect not only meat processing plants, but also the healthcare sector. In this case, a number of clinics will have to postpone operations in which gas is used during surgical intervention.