Russian Fertilizer Producers Association held an annual meeting
The annual general meeting of members of the Russian Fertilizer Producers Association (RFPA) was held in Moscow. Traditionally, at the annual meeting, representatives of the RFPA member companies summed up the work over the past year and discussed immediate plans and prospects.
In 2022, the production of mineral fertilizers in Russia reached 54.3 million tons. At the same time, the main types of mineral fertilizers used in the domestic agro-industrial complex (nitrogen, phosphorus) were produced by 3% more than a year earlier. At the same time, the production of potassium chloride, the use of which in Russian agriculture is insignificant (2-3%), decreased by more than a third, which was the result of a reduction in the export opportunities of producers due to sanctions against Russia. Last year, exports decreased by 15%. At the same time, Russian companies, in the face of new challenges, redirected supplies to the markets of friendly countries. They accounted for 70% of all Russian fertilizer exports last year. India became the leader in the growth of imports of Russian fertilizers, increasing the supply by more than 3 times. Other important export destinations are the Middle East, primarily Turkey, where deliveries increased by 3.5 times, as well as the African continent.
Russia still holds the 1st place in the world in terms of export and the 2nd place in the production of mineral fertilizers. Over the past 10 years, domestic enterprises have provided a third of the growth in fertilizer production on the planet, which was the result of large-scale investments by Russian producers in development. During this period, their volume exceeded 1.8 trillion rubles (approximately $19.8 billion).
The domestic market remains a priority for the Russian mineral fertilizer industry. This year, RFPA is preparing to celebrate its 15th anniversary, during which time the consumption of fertilizers in Russia has more than tripled and last year reached 5.8 million tons.
“Traditionally, we hold an annual meeting closer to the end of the agricultural season, when we can sum up the first results of the work of RFPA members with a priority consumer, which was and remains the Russian agro-industrial complex. The main thing that has been done is that Russian farmers are fully provided with mineral fertilizers for spring field work and purchases are already underway for autumn. Thus, as of the end of June, the predicted volume of purchases of mineral fertilizers by agricultural producers in 2023 has already been provided by almost 70%. All requests from farmers, according to the RFPA, are processed in a timely manner. We also control the delivery of products to the regions. Thanks to the joint efforts of the RFPA, the Ministry of Agriculture, the Ministry of Transport and Russian Railways, it was possible to reduce the balance of unsent wagons to a minimum. In turn, the special labeling of cargoes with fertilizers allows establishing dispatch control over their progress within the timeframe required by the agricultural enterprises. Therefore, there is no doubt that the projected volume of mineral fertilizer purchases in 2023 – 5.4 million tons of active ingredients – will be met in full by the enterprises of our industry,” said RFPA President Andrey Guryev.
At the annual meeting, the key areas of the association’s work for 2023 on the export of Russian mineral fertilizers were discussed. Due to the fact that producers, for reasons beyond their control, could not use the quotas in the amount of 550 thousand tons, provided for by the relevant decrees of the Government of Russia, the association plans to apply to the Government of Russia with a question about allocating additional quotas this fall. Besides, the members of the RFPA prepared a proposal on the transition from export quotas to its licensing, not limited by quotas. It will be brought to the Ministry of Industry and Trade of Russia as soon as possible.
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