Yara (demerged from Norsk Hydro in 2004) is provider of nitrogen-based fertilizers (NPK, Nitrate, Urea, Ammonia etc.). The company is operating globally with sales to more than 120 countries, but the European market is still the backbone of production and sales. The fertilizer industry is fragmented, but consolidation is ongoing. Fertilizer prices are highly correlated with grain prices (wheat, rice and corn). The long term demand for grain and other farm products which translates into increased fertilizer consumption is driven by population growth, improved living standards, use of biofuels and reduced available land for food production. On the supply side, the main driver is the cost of natural gas which is the main raw material in the production of nitrogen fertilizer.