Fertilizer prices and 2022 crop. How to increase agribusiness margin

Winter crops sowing in Ukraine is almost complete. According to UkrAgroConsult, the area of winter crops will remain at the high level of the past year. However, reaching an equally massive production will depend not only on weather conditions, but also on adherence to technologies, in particular, application of the required amount of mineral fertilizers.

Ukraine’s farming sector annually consumes 2.1-2.2 MMT of ammonium nitrate and a bit less than 1 MMT of urea ammonia liquor. Three major fertilizer producers operate in the country, but one of them has stopped. Signs of these products’ shortage in the Ukrainian market are already seen, but now it is extremely hard to say how acute this shortage will be.

Natural gas prices are on the rise and this cannot but affect those of fertilizers, since natural gas accounts for 60 to 80% of their production cost.

Now is the time when growers usually begin purchasing inputs for spring planting. Ammonium nitrate cost UAH 8,000/MT in January 2021 and as much as UAH 24,000-25,000 in late October, while its price was UAH 18,000-20,000 back in the middle of the month. The price increase is rather noticeable.

Improve efficiency of grain and oilseeds sales, taking into account fundamental changes and the latest market trends, presented as the results of Market Study “Ukraine: Mineral fertilizers market and agri business profitability”.

You will find out:

• Price forecast for gas as a global price-driving factor. Commitments and regulatory policies to reduce emissions
• Assessment of deficit and demand for fertilizers by groups
• Ukrainian mineral fertilizers production and imports  by groups
• Mineral fertilizers price forecast: how long will ‘super prices’ last?
•  Margin formation within rising prices for agri  technologies

MORE DETAILS

 All market studies by UkrAgroConsult can be found here.

UkrAgroConsult

Tags: prices, margin, fertilizers, gas, Ukraine