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Likewise in Italy, the cost of energy to process wheat and corn is expected to go up more than 600% for the three months ending Dec.
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High energy prices already were hitting the region’s farmers, who need diesel to operate machinery and heat to keep animals warm, said Greif, who grows corn to feed a bioenergy power facility that feeds emission-free energy into the power grid. “It’s a situation we’ve never seen before.” One thing is certain: “If I don’t give the crops the food they need, they react with lower yields. “There’s no product, no price, not even a contract,” he said. That left Hermann Greif, a farmer in the village of Pinzberg in southern Germany’s Bavaria region, unexpectedly empty-handed when he tried to order fertilizer for next year. German chemical companies BASF and SKW Piesteritz have cut output of ammonia, a key ingredient in fertilizer. In the meantime, some gas-dependent European industries are throttling back production. World & Nation El Salvador explores bitcoin mining powered by volcanoesĪt a geothermal power plant near the Tecapa volcano, computers make mathematical calculations verifying transactions for the cryptocurrency bitcoin. “From October we are starting to suffer a lot,’’ said Valentino Miotto of the AIRES association that represents the grain sector. That could eventually raise the price of bread and pasta at supermarkets, but meat and dairy aisles are more vulnerable as beef and dairy farmers are forced to pay more for grain to feed their animals and pass the cost along to customers. It’s hitting the Italian food chain hard, with methane prices expected to increase sixfold and push up the cost of drying grains. The biggest squeeze is on natural gas in Europe, which imports 90% of its supply - largely from Russia - and where prices have risen to five times what they were at the start of the year, to 95 euros from about 19 euros per megawatt hour. Heading into winter, that has meant higher utility bills, more expensive products and growing concern about how energy-consuming Europe and China will recover from the COVID-19 pandemic. The world is gripped by an energy crunch - a fierce squeeze on some of the key markets for natural gas, oil and other fuels that keep the global economy running and the lights and heat on in homes. And fears are rising that Europe will have to ration electricity if it’s a cold winter. German corn and wheat farmers can’t find fertilizer, made using natural gas. The poor in Brazil are choosing between paying for food or electricity. Power shortages are turning out streetlights and shutting down factories in China.
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