AGF Nitrogen, Europe’s second-largest producer of fertilizers and nitrogen-based products, is considering reducing ammonia production at its manufacturing plants. The reason is the rising cost of natural gas and persistently high prices of emissions allowances.
“Ammonia production and pricing are fundamentally determined by the cost of natural gas, energy, and, consequently, emissions allowances. As natural gas prices continue to rise and emissions allowance prices remain several times higher than in the rest of the world, ammonia and the fertilizers produced from it are reaching again a price level that is becoming unaffordable for European farmers. As a result, farmers are already reducing demand for fertilizers for the upcoming season. Yet without fertilizers, it is impossible to secure sufficient crop yields, and we view the current situation as a serious threat to European food security,” warns Petr Cingr, CEO of AGF Nitrogen.
About AGF Nitrogen
The subholding company AGF Nitrogen, a.s., was established in July 2026 with the aim of closely coordinating all activities of the companies belonging to the pan-European chemical division of the AGROFERT Group. AGF Nitrogen ensures the reliable and safe production and distribution of ammonia, technical products, and fertilizers for European agriculture, industry, transport, energy, and healthcare. AGF Nitrogen comprises Lovochemie, Duslo, SKW Piesteritz, LAT Nitrogen, GreenChem, AGF Ammonia Holding, and VUCHT.