PhosAgro-Region sales have soared by almost 50%
The company PhosAgro-Region (part of PhosAgro) increased the total supply of mineral fertilizers to Russian farmers by 47% to 1.2 million tons in Q1 of 2020. PhosAgro fertilizer sales to the domestic market increased by 50% to 916.7 thousand tons, whereas the network’s sales of third-party products from other Russian manufacturers grew by 36% year-on-year.
“The domestic market will always be our strategic priority and the largest individual market in terms of sales volumes for our products,” commented PhosAgro CEO Andrey Guryev. “In order to ensure that farmers have a reliable supply of mineral fertilizers amid the coronavirus pandemic, we have put in place a set of measures to prevent the spread of the disease at our enterprises, in the cities where we operate and at regional distribution centers, where contactless shipment of fertilizers to customers has been arranged.
In the 1st quarter, the Russian market showed record growth: according to the Russian Fertilizer Producers Association, mineral fertilizer sales to the country’s farmers rose by almost 40% year-on-year. The dramatic increase in purchases for spring field work, which started earlier than usual this year and is much more dynamic, can be explained by the rapid growth of agricultural production and the impressive crop production last year, as a result of sound government policies in the field of agriculture and support from fertilizer producers.
This year, our consumers are seeking to get the most out of the favourable price situation in the market. If earlier the 1st quarter used to be mainly the season for nitrogen fertilizers, then this year many PhosAgro-Region customers purchased phosphate-based and NPK fertilizers for both spring and autumn sowing. In this regard, we increased the supply of a wide range of phosphate-based grades to the domestic market by 50%, including liquid complex fertilizers, which doubled their sales.”