PhosAgro has set a record in supplies
PhosAgro announces record deliveries of mineral fertilizers to the domestic market in the year of its 20th anniversary. The company’s distribution network increased sales of mineral fertilizers to Russian farmers by 12.1% to 3.54 million tons.
PhosAgro products account more than 80% of the total supplied volume. Compare to the previous year, Russian farmers increased the purchases of fertilizers by 8% to 2.9 million tons. PhosAgro sales of phosphorus and compound fertilizers raised by 7.4% to 2.36 million tons. Supplies of products from other producers by regional companies of the PhosAgro-Region network reached 640 thousand tons.
According to the Russian Fertilizer Producers Association, PhosAgro remains the leader in terms of the total supply of all types of mineral fertilizers to Russian farmers. The Russian market, to which PhosAgro provides about 30% of its products, is the largest and priority one for the company.
“The main growth driver in sales was high liquidity of Russian agricultural products, which provided farmers with sufficient funds for technological development and the purchase of mineral fertilizers.
Local authorities, in turn, provided farmers with an opportunity to apply mineral fertilizers at optimal agronomic time limits even amid the pandemic that began almost simultaneously with the spring fieldwork,” said PhosAgro CEO Andrey Guryev. “We have done everything necessary to deliver the required volume of mineral fertilizers to the regions on time. The growing demand for PhosAgro mineral fertilizers was met by the continuous operation of our Apatit production complex and logistics assets of PhosAgro-Region, where the contactless shipment was organized.
We believe that these three circumstances mainly explain the record harvest in the regions of PhosAgro presence even under unfavorable agrometeorological conditions at the beginning of the year.”
PhosAgro-Region’s investments in the development of the distribution network in 2020 amounted to about 600 million rubles (approximately $8 million). The company increased the number of regional offices from seventeen to nineteen. The number of PhosAgro-Region warehouse complexes reached 29 in 2020, and the one-time storage capacity reached 700 thousand tons of granular and liquid mineral fertilizers.
“Over the past three years, we have invested more than 2 billion rubles (approx. $26.6 million) in the development of the Russian regional network. In 2021, we intend to focus on expanding the storage and transshipment infrastructure of liquid mineral fertilizers. Its capacity has already exceeded 50 thousand tons, however, we believe that this is not enough for efficient farming in extreme weather conditions typical for our country. The drought that has hit the regions in southern Russia and Siberia has shown that there is no alternative to liquid fertilizers. Last year, PhosAgro-Region increased the supply of PhosAgro liquid complex fertilizers to the regions by 85%,” emphasized Andrey Guryev.