Fertilizer Giant Yara's CEO on Energy Crisis-Induced Cuts

The video discusses the challenges faced by the fertilizer industry due to rising natural gas prices, which have led to increased production costs and potential impacts on global food supply. It highlights the importance of mineral fertilizers in food production and the industry's response to volatile market conditions, including financial strategies and operational flexibility. The discussion also covers the potential for further facility shutdowns and the need for continuous evaluation of production strategies.

What is the primary reason for the increased cost of mineral fertilizers?

• Increased natural gas prices

• Rising labor costs

• Higher transportation fees

• Decreased demand for fertilizers

How much behind were nitrogen deliveries in Europe for the 2021-22 season compared to the previous year?

• 25%

• 10%

• 15%

• 19%

What is one of the strategies mentioned to support farmers amidst high fertilizer prices?

• Subsidizing fertilizer costs

• Finding optimal levels of irrigation

• Reducing fertilizer quality

• Increasing fertilizer production

What is the company's approach to handling the volatility in gas prices?

• Reducing production

• Maintaining a flexible operating model

• Increasing prices

• Hedging extensively

What is the company's policy regarding capital allocation amidst the current economic conditions?

• Investing in new plants

• Increasing debt

• Paying dividends based on results

• Reducing workforce

How does the company manage to maintain production levels despite high gas prices?

• By importing ammonia

• By shutting down plants

• By increasing gas consumption

• By reducing fertilizer quality

What is the company's strategy to deal with the likelihood of shutting more facilities?

• Increasing fertilizer prices

• Increasing local gas production

• Reducing workforce

• Everyday evaluation of operations