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Russian farmers increased mineral fertilizer purchases by 16% in 2022

31.01.2023 | News

According to Russia’s Ministry of Agriculture, Russian agribusiness increased purchases of mineral fertilizers by 16% year-on-year in 2022, to 5.8 million tonnes (calculated as 100% of the active ingredient), taking into account accumulated stocks. In terms of gross weight, Russian producers supplied 27% more product than the previous year.

Production of the main types of mineral fertilizers (nitrogen- and phosphate-based as well as cutting-edge complex fertilizers) increased by 3% by gross weight. At the same time, the production of potassium chloride, which accounts for a negligible amount (2%–3%) of the fertilizers used in Russian agriculture, decreased by 35%, which was the result of a reduction in export opportunities for domestic producers due to anti-Russian sanctions.

 The President of the Russian Fertilizer Producers Association, Andrey Guryev, said:

“Russian agribusiness has been and remains a strategic and priority consumer for the mineral fertilizer industry, as clearly evidenced by supply trends. What we will remember about 2022 is that fertilizer producers were able to meet the Agricultural Ministry’s increased target for annual supplies to agribusiness long before the end of the year (back in October already), which has now become a tradition. Supplies are now being provided for spring sowing under standard operating conditions, and major consumers are already submitting requests for autumn field work as well.

“According to Russia’s Ministry of Agriculture, thanks to mineral fertilizers stockpiled by farmers last year, 20% of projected volumes to be purchased for the current year, declared by Russian agribusiness to be 5.6 million tonnes of active ingredient, has already been supplied.

“We are confident that producers will be able to meet the mineral fertilizer needs of domestic farmers in full. And we also hope that agricultural producers will purchase the entire amount of mineral fertilizers included in the Agriculture Ministry’s plan.

“In 2022, the domestic mineral fertilizer industry faced new challenges. Companies in the industry are operating under unprecedented sanctions pressure. Foreign ports, carriers, banks and insurers are refusing to work with exporters of Russian mineral fertilizers in a number of areas. Nevertheless, most major Russian producers, capable of operating in a flexible manner in a changing market environment, were able to redirect their supplies to consumers in friendly countries.

“We are hoping for the removal of sanctions barriers – both restrictions on the export of Russian products and on the import of new technologies for the production of mineral fertilizers – which are causing considerable damage to global food security. Also, taking into account the existing macroeconomic situation, we believe that it IAS necessary to at least partially unfreeze market mechanisms for the sale of agrochemical products. In particular, we support the development of exchange-based auctions of mineral fertilizers, as well as SPIMEX's proposal to credit exchange-based sales towards fulfilment of the annual target for supplies of mineral fertilizers to Russian consumers.

“Despite difficulties in the cross-border fertilizer trade, member companies of the Russian Fertilizer Producers Association continue to invest in their own development and the modernisation of existing facilities. Over the past nine years, some RUB 1.8 trillion has been invested, leading to an increase in output by almost a third and a rise to second place in the global rankings of fertilizer production.”


 

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