Industry association urges government to restart Odesa Portside Plant and scrap import duties on fertilizers
The Ukrainian Agrarian Council (UAC) has appealed to the government over the risk of a nitrogen fertilizer shortage ahead of the spring sowing campaign.
In a letter addressed to Minister of Economy, Environment and Agriculture Oleksii Sobolev, the association warned that the situation on the global market has already led to a sharp increase in prices.
“Currently, the available supply on the global fertilizer market is unable to meet demand. As a result, exchange prices for urea have already reached $730 per ton and are likely to continue rising,” UAC emphasized.
An additional risk factor is the restriction on imports of ammonium nitrate, which is further exacerbating the deficit on the domestic market.
UAC cautions that this may have a direct impact on crop yields.
“If the situation is not urgently addressed, the reduction in total agricultural output due to nitrogen shortages could significantly exceed 20% and have long-term consequences,” the statement said.
At the same time, the association notes that Ukraine has the capacity to quickly ramp up its own fertilizer production.
“According to market analysts, following strikes on CHP plants and their temporary shutdowns, gas consumption has decreased and reserves are 3 bcm higher than last year, which makes it possible to urgently start nitrogen fertilizer production,” the association stated.
UAC is calling on the government to urgently stabilize the market and ensure growers have access to the necessary inputs for the sowing campaign. In particular, it proposes to promptly restart the capacities of the Odesa Portside Plant to produce ammonia and urea, as well as to abolish import duties on key types of fertilizers.
