Svein Tore Holsether, CEO of fertilizer major Yara International, stated that Europe risks falling behind the US and China due to high energy costs and slow industrial transition. Holsether described the implementation of Mario Draghi’s EU competitiveness report as "alarmingly slow."

Svein Tore Holsether

Yara International CEO Svein Tore Holsether warned of structural crises as European chemical sectors lose ground to international rivals. High natural gas prices, exacerbated by conflicts involving Iran and disruptions in the Strait of Hormuz, are driving up nitrogen fertilizer production overheads and hitting farmer affordability. While the European Commission recently suspended customs duties on nitrogen-based fertilizers, Holsether dismissed these measures as insufficient without larger energy infrastructure overhauls.

Driven by European cost pressures, Yara is actively shifting capital to the US. The company is developing a joint ammonia production project in Louisiana with Air Products & Chemicals, with a final investment decision expected by mid-year. As China and Russia tighten export controls, Europe's regulatory and energy burdens directly threaten agricultural yields and regional food security.

"Developments in the Middle East put significant pressure on the global food system, with knock-on effects across the value chain and growing challenges for farmer affordability," Holsether told Bloomberg.