Russian fertilizer producers supplied 98% of the annual demand on the domestic market
Russian farmers increased their purchase of mineral fertilizers by 14% to 4.39 million tons. Thus, the annual demand for mineral fertilizers of 4.52 million tons, declared by the Ministry of Agriculture of Russia in February 2021, has already been fulfilled by 98%. There is no shortage of mineral fertilizers, and it’s not expected.
Having provided themselves with the required amount of complex fertilizers for autumn fieldwork, farmers have already begun to prepare for the spring season by purchasing nitrogen fertilizers. A significant share of purchases shifted from spring to autumn. Due to the increased demand, Russian producers will keep prices for mineral fertilizers frozen until the end of 2021, ensuring stable conditions for creating the necessary reserves for spring fieldwork.
As of today, producers are ready to meet almost any reasonable demand growth in the Russian market. Amid difficulties with fertilizer production in many other countries, Russia increased its output by 5.6% during the first nine months of 2021 and confidently holds the world second place in terms of fertilizer production.
Another insurance that fertilizers for spring sowing will be supplied in the required volume was the limitation on the exports of mineral fertilizers imposed for the next six months. The restrictions will not lead to a decrease in the loading of production capacities and will relieve farmers’ concerns about the availability of mineral fertilizers in Russia caused by the deficit in the European market.
“There is not a shadow of a doubt that the need of the Russian agro-industrial complex for mineral fertilizers for this year will be fully met. Of the total required volume of 4.52 million tons, announced by the Ministry of Agriculture of Russia in February 2021, producers have only a little more than 100 thousand tons left to supply to the regions,” said Andrey Guryev, the President of the Russian Fertilizer Producers Association and PhosAgro CEO.