Yara is to cut its fertiliser output in Europe by 40%, it has announced.

The move is being made due to rising natural gas price, according to the company.

“Record high natural gas prices in Europe are impacting ammonia production margins and, as a result, Yara is curtailing production at a number of its plants,” the company said.

“Including optimisation of ongoing maintenance, Yara will by next week have curtailed around 40% of its European ammonia production capacity.

"Yara will continue to monitor the situation, with the objective to keep supplying customers but curtailing production where necessary,” it said.

Yara supplies large amounts of bulk nitrogen to fertiliser suppliers in Ireland.

The Norway-based fertiliser company reported a 19% increase in operating profits to €115m for its 2020 financial year, as operating profit margins jumped to 10%.