PhosAgro-Region sales are close to 3.2 million tons
In 2019, PhosAgro-Region (part of PhosAgro) increased its supplies of mineral fertilizers to Russian farmers by 7.6% to 3.16 million tons.
Sales of products manufactured by PhosAgro enterprises grew by 10.5% to 2.69 million tons. More than 80% of this volume came from phosphate-based and complex fertilizers, sales of which expanded by 13.9%.
According to the Russian Fertilizer Producers Association, PhosAgro remains the leader in the overall supply of all types of mineral fertilizers to Russian farmers. The domestic Russian market is a priority for the company, where PhosAgro sells about 30% of its products manufactured taking into account the demand from domestic farmers and standards for environmentally friendly agricultural products.
In Q4 2019, supplies of PhosAgro products to the domestic market increased by 15% compared to the same period in 2018. In many respects, the dynamic growth in demand for phosphate-based fertilizers is largerly due to the fact that farmers began to stock up phosphate-based fertilizers in advance not only for the spring, but also for autumn field work in 2020.
The largest consumers of agrochemicals and services of the PhosAgro-Region remain the Central Black Earth Region and the south of Russia, which account for about 70% of sales. The Black Earth Region was the leader in terms of growth in purchases of mineral fertilizers in 2019, where PhosAgro-Region increased the total sales of all types of mineral fertilizers by 9.2% to 1.24 million tons.
In 2019, PhosAgro-Region invested more than 650 million rubles (more than $ 10 million) in the infrastructure development in priority regions. New logistics capacities were launched in the Tambov and Voronezh regions, which made it possible to reduce the end consumers’ costs for the delivery and storage of mineral fertilizers, and to improve the reliability of providing farmers during field work and peak demand. In November last year, PhosAgro-Region began construction of the fifth distribution center in the Krasnodar region, the launch of which is expected shortly before the start of spring field work.
As of the end of 2019, the one-time storage capacity of PhosAgro-Region warehouse complexes exceeded 650 thousand tons. Almost all distribution centers are provided with capacities for storage and shipment of liquid mineral fertilizers: over the past 5 years, their total capacity has increased 10 times to almost 45 thousand tons. Of these, about half are located in the southern regions of Russia, which are actively developing the practice of applying liquid complex fertilizers.
“PhosAgro supplies more fertilizers to the Russian market than to any other country in the world. In 2019, for the first time in the recent history of the Russian agribusiness, PhosAgro-Region exceeded three million tonnes in sales of mineral fertilizers to farmers. More than a third of these sales were made up of a wide range of NPK fertilizers, which have proven their effectiveness in ensuring the consistently high quality of domestic agricultural products and their unique environmental performance”, said PhosAgro CEO Andrey Guryev. – In turn, a large and profitable harvest enabled farmers to invest more heavily in the mineral nutrition systems used for their crops to achieve better results, which supports the growth of the entire mineral fertilizer industry.
As of the end of 2019, the volume of supplies of mineral fertilizers from the largest producers to the Russian market had grown by 14.5% to 9.5 million tonnes, which was the highest figure seen in the past 20 years. This year, the demand for fertilizers in the Russian market may increase by another 5-10%.
I am confident that the creation of the national Green Standard for environmentally friendly products will contribute to the further development of the Russian agricultural sector, which will allow us to highlight the competitive advantages of Russian agricultural products in foreign markets, and to use advanced agricultural technologies to create an affordable basket of wholesome food products for domestic consumers.”