55/1-1, Leninsky prospekt, Moscow, 119333

Russian farmers have already purchased more than 98% of the fertilizer needed for all of 2021

10.11.2021 | News

As of the first ten days of November, Russian farmers increased the purchase of mineral fertilizers by 14% to 4.39 million tonnes (calculated as 100% of the active ingredient), according to the Russian Ministry of Agriculture.

As such, over 98% of the annual demand for mineral fertilizers of 4.52 million tonnes, as announced by the Ministry of Agriculture of Russia in February 2021, has already been supplied. There is no shortage of mineral fertilizers nor is one expected.

On the instructions of First Deputy Russian Prime Minister Andrey Belousov, a method for determining the affordability of fertilizers has been developed and successfully applied.

Having been fully supplied with complex fertilizers for the autumn, farmers have already started to prepare for spring by purchasing nitrogen mineral fertilizers. A significant share of purchases have shifted from spring to autumn. Due to the increased demand, Russian mineral fertilizer producers extended the price control regime for Russian agribusiness until December 31, 2021, ensuring stable conditions for building up the necessary reserves for spring.

As of today, the industry is capable of meeting virtually any reasonable demand trend in the Russian market. While many countries are struggling with fertilizer production, Russia increased its output by 5.6% from January to September and comfortably holds second place in the world for fertilizer production volumes.

The Russian Government's decision to impose export quotas on mineral fertilisers for a six-month period was an additional guarantee that a sufficient volume of fertilizer would be available for the spring sowing season. The quotas will not lead to a reduction in the load on production capacity and will help alleviate farmers' concerns about the availability of fertilisers caused by shortages in the EU market.

Andrey Guryev, President of the Russian Association of Fertilizer Producers and PhosAgro CEO, said: “There is no doubt that the Russian agricultural sector's demand for mineral fertilizers for this year will be met fully. Of the 4.52 million tonnes announced by the Russian Ministry of Agriculture in February 2021, just over 100,000 tonnes remain to be supplied to the regions.

It should also be noted that, for the third year in a row, fertilizer producers are operating in conditions where actual demand from Russian agribusiness has surpassed the Russian Ministry of Agriculture’s most optimistic forecasts. In 2019, the difference between the planned and actual volume supplied was almost half a million tonnes of active ingredient. In 2020, the Ministry of Agriculture revised the required volume from 3.4 million tonnes to 3.8 million tonnes, while the actual volume purchased was 4 million tonnes. This year, required volume has been raised from the 3.8 million tonnes announced to 4.52 million tonnes currently. And this volume has already effectively been met.

Next year, according to the Russian Ministry of Agriculture’s forecasts, the volume of mineral fertilizers required by the agricultural sector in 2022 will be 4.7 million tonnes. Like this year's demand, it will be met fully by Russian producers.

In the event of another change in the forecast, the industry is ready to adjust its production plans in favour of the priority domestic market. New demand in each region will be considered in working order together with regional agribusiness authorities.

As this year has shown, this is the most effective approach. Since the growth of annual demand was 13% in 2021, the growth of fertilizer purchases by farmers during the spring sowing period was 20%".

The domestic market has been and will always remain the priority for Russian mineral fertilizer producers.

In order to meet the growing demand from Russian farmers, which has almost doubled in the last 5 years, and to maintain and expand its position in the high-tech non-commodity export market, the industry has invested over RUB 1.3 trillion over the last 7 years, and another RUB 2 trillion will be invested over the next 7 years.

As a result of investments made since 2013, the industry's production capacity will almost double by 2026.


Other news

UNESCO Launches Call for Applications for Green Chemistry for Life Programme in Cooperation with PhosAgro and IUPAC

Since the Green Chemistry for Life programme was first established, the international scientific jury for the competition – 13 scientists from 11 countries – has co...

Head of Russian Fertilizer Producers Association Discusses Annual Results

The latter is the result of large-scale investment programmes on the part of industry leaders. Over the past nine years – since the beginning of the new investment ...

PhosAgro Deputy CEO Alexander Sharabaiko Takes Part in Webinar on Doing Business in Brazil

In 2021, trade between Russia and Brazil increased by nearly 87%, to around⁠ USD 7.5 billion, surpassing pre-pandemic levels. The main driver was Russian export...

На верх страницы