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16 July 2019

Agrochemicals

FERTILIZERS

The record amount of mineral fertilizers was exported to Ukraine in 2017. Compared to last year, import of complex mineral fertilizers grew by 47%, nitrogen fertilizers by 40%, phosphorous by 99%, while imports of potassium fertilizers decreased by 59%, due to an increase in imports of complex fertilizers containing potassium. The reason of import growth was driven by growing needs for agricultural sector in mineral fertilizers through intensification of agricultural technologies. Also, another factor that caused the increase in imports of fertilizers were stopping Ukrainian factories that produce mostly nitrogen fertilizers. The situation is as follows, annual demand from domestic farmers for fertilizers is increase, while the volume of domestic production are decrease every year, therefore we  can see a trend to increase imports. Domestic producers are not able to provide internal needs for fertilizers (especially complex fertilizer) and try to speculate on social and political themes, in order to obtain certain preferences from the state.

With the increase in the market of mineral fertilizers in Ukraine and the decrease in their production by domestic enterprises, we can see increase interest of suppliers to the Ukrainian market from the EU and the Middle East countries.

In January-July 2018, imports of nitrogen and complex fertilizers (by an average of 14%) decreased in comparison with the same period last year, but the volume of imports of phosphorus and potash fertilizers increased (from 1,2 and 7,1 thousand tons to 8,8 and 11,7 thousand respectively).

Import of fertilizers, thsd t

Source: State Statistics Service of Ukraine 

Dynamics of prices for mineral fertilizers, USD/t

Source: Price monitoring by UCAB

During 2017 and early 2018, Ukraine followed a tendency towards rising dollar prices for major types of mineral fertilizers. Such an effect was observed due to the stops of fertilizer production at the main domestic plants and the introduction of import duties for the supply of Russian fertilizers, which form the basis for import. It is noteworthy that if Russia and Belarus were the main exporters of fertilizers in Ukraine, then in 2016 and 2017 the European producers began to actively go out and decrease the share of Russia and Belarus. Despite the fact that the main positions in the fertilizer market remain in the CIS countries, this indicates an increase in competition in the Ukrainian fertilizer market. Despite the fact that the main positions in the fertilizer market remain in the CIS countries, competition in the Ukrainian fertilizer market is increasing.

PLANT PROTECTION PRODUCTS (PPP)

The market of plant protection (PPP) was amounted to about $ 1.0-1.1 billion in 2017. The largest growth dynamics was characteristic for the segment of fungicides and insecticides - increased by 25% and 23% respectively. The market of herbicides increased by 11% compared to last year. Growth in deliveries to PPP was due to an increase in demand from agricultural producers by continuing the trend towards intensification of agricultural production and the favorable financial situation of agro-enterprises on the background of high profitability indicators for grain and oilseeds in 2016, which allowed them to increase the cost of PPP for increasing productivity of agricultural crops.

In the first 7 months of 2018, imports of insecticides and fungicides increased by 14%, and herbicides increased by 0.5% compared to the same period of 2017.

Import of plant protection products, mln USD

Source: State Statistics Service of Ukraine