“As of mid-October, the Russian agro-industrial complex is provided with 14% more mineral fertilizers than in the same period last year - 4,26 million tons (in terms of 100% nutrients - d.v., according to the Ministry of Agriculture of Russia). Thus, the demand of Russian farmers for mineral fertilizers declared by the Ministry of Agriculture for the whole of 2021 is already 95% closed. There is no shortage of mineral fertilizers in our country and is not expected ”. - It is noted in the message of the Russian Association of Fertilizer Producers (RAPU).
In September, the Ministry of Industry and Trade and the Ministry of Agriculture of Russia updated the program for the required volumes of fertilizer supplies by the end of the year, broken down by types of fertilizers and by the remaining months, including the purchase of ammonium nitrate for future periods. According to the experts of the Association, the program is being implemented in full. "The declared annual demand of the agro-industrial complex of the Russian Federation for fertilizers, especially for ammonium nitrate, will be provided in full, the probability of a hypothetical shortage of mineral fertilizers in the domestic market is absent." - We are confident in RAPU.
RAPU member companies also continue to implement a whole range of measures to support the Russian agro-industrial complex, which is a strategic priority for them. In particular, in mid-July - early August of this year, on the eve of the season of high demand for mineral fertilizers for autumn sowing, the largest producers of mineral fertilizers announced price control and discounts until the completion of autumn field work. This was the result of voluntary decisions by manufacturers to support farmers, taking into account the changing macroeconomic situation associated with the consequences of the pandemic and natural disasters in a number of Russian regions.
Having provided themselves in full with phosphorus for the autumn field work, the farmers have already begun to prepare for the spring and buy nitrogen fertilizers. A significant share of purchases shifted from spring to autumn. Due to the increased demand, Russian producers extended the regime of containment of prices for mineral fertilizers until December 31 of this year, ensuring stable conditions for creating the necessary reserves for spring field work. Thus, the reduction in the production of nitrogen fertilizers in Europe and the prevailing global price environment for this type of fertilizer will not affect the availability of mineral fertilizers for Russian farmers.
The report notes that the enterprises of the RAPU will additionally discuss with the Government of the Russian Federation, the Ministries of Agriculture and Industry of Russia a set of measures for the reliable supply of mineral fertilizers to Russian farmers next year. So, the Ministry of Agriculture of the Russian Federation recently presented to the RAPU the need for mineral fertilizers for 2022 at 4,7 million tons of diesel fuel. with the specification of the volume of application for spring and autumn field work, based on which the production programs of the enterprises of the RAPU will be built in a priority order. And it, as well as the need for fertilizers on the part of Russian farmers for this year in 4,52 million tons of fuel oil, will be reliably provided. To do this, in 2021-2022. the enterprises of the industry plan to invest another 500 billion rubles. in the development and modernization of production facilities for the production of finished products for farmers.
According to the forecast of the Ministry of Agriculture presented by the RAPU, by 2025 the consumption of mineral fertilizers will double (compared to 2020). To meet the growing needs of Russian farmers and maintain the positions it won in foreign markets, the industry has invested over 1,3 trillion rubles in the last 7 years alone, when a new investment cycle began in the industry, and about 2 trillion rubles will be invested in the next 7 years. As a result of investment activity since 2013, by 2026 the production capacity of enterprises in the industry will practically double.