We absolutely don’t want to panic, but there are many indications that fertilizer prices are on the rise as well. They have already traveled the world. We collected feedback from Poland’s largest fertilizer producers: Grupa Azoty and Anwil, as well as information from foreign services.
There is concern in the market about limiting global fertilizer supply, which is why it is already reacting to price increases. – Russia is one of the largest exporters of the three major groups of fertilizers (nitrogen, phosphorous and potassium). gro-intelligence.com reports that physical reductions in supply can lead to an increase in fertilizer prices. In addition, Russia is a major global player in the market for natural gas, which is the main component in the production of nitrogen fertilizers. Higher gas prices and supply constraints are likely to drive up fertilizer prices.
How is the situation assessed by fertilizer producers from Poland?
– In European countries, the current situation in the fertilizer market is a challenge for both farmers and fertilizer producers, who run production operations based on expensive raw materials – Grupa Azoty SA spokesperson, Monika Darnobyt, told Farmer.pl
As she added, the company constantly monitors the business environment and assesses risks.
– Currently, fertilizer prices in Poland are the lowest in the entire European Union, and the Grupa Azoty group continues to produce fertilizers at full production capacity, carrying out all contract deliveries to the nationwide licensed network – Darnobit reported.
How did Anuel respond to us? – Anuel, as a producer of nitrogen fertilizers, monitors the current situation in the market for raw materials and will constantly adapt its quotation to market realities. We always stress that fertilizer prices depend primarily on natural gas prices, as reported by Farmer.pl Biuro Komunikacji Anwil.
Fertilizer prices have risen all over the world
Urea prices in New Orleans soared to $700/ton Thursday, compared to $560 for the same week a few days ago, a 25 percent increase. Increase – according to data from Bloomberg Green Marketplace.
On the other hand, Farmpolicynews.illinois.edu quoted Josh Linville, fertilizer manager at StoneX, as saying that Brownfield Russia is a major exporter of nitrogen, potassium and phosphorous fertilizers. – Global urea prices rose by more than $200 per ton overnight. The price of urea increased by 32-33 percent. In less than 12 hours. Global supply and demand were unchanged as a result of the attack, so the market is now operating out of fear, it has been reported. Linville said on Twitter that the ammonium phosphate, in turn, had increased by about $100 per ton in that time.
Russia was the world’s largest exporter of nitrogen products in 2021, Alexis Maxwell, an analyst at Green Markets, said in a Bloomberg report, citing agrarheute.com. “Decreased supply of exports will hurt agricultural markets in the northern hemisphere,” Maxwell said. First, its consumption season peaks in the second quarter.”
She added that there are also new price increases for other major fertilizers, such as potash and phosphorous, on the horizon as the war between Russia and Ukraine increases fears of global shortages and fuels those linked to rising food costs. In addition, the war and sanctions against Russia (and Belarus) are likely to affect trade flows.
Meanwhile, information from the “field” appears that farmers are receiving text messages from distribution companies stating that it is not possible to purchase in bulk quantities of nitrogen and multi-ingredient fertilizers. Have you encountered this? Is anyone creating a panic here like it was with the fuel accident?
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