Nongovernment professional organizations have addressed to the Cabinet of Ministers and the Prime Minister of Ukraine Arseniy Yatseniuk a request to stabilize the situation in the market of mineral fertilizers in Ukraine with the purpose to give domestic agricultural producers better access to them. The corresponding letter was signed by leaders of such organizations: Association "Ukrainian Agribusiness Club", Agrarian Union of Ukraine, Association of Farmers and Private Landowners of Ukraine, Association "Union of Feed Producers of Ukraine”, "Ukrainian Agrarian Confederation", "Ukrainian Agrarian Association”.

"Recent years in Ukraine are marked by growth in using the main types of mineral fertilizers, as well as increasing volume of complex fertilizers application. The demand is been formed by agricultural enterprises with various structural and legal forms, and size of land bank, including large agriholdings, where significant attention is payed to the intensification of agricultural production," – is said in the UCAB press service statement.

However, the market keeps high prices for mineral fertilizers. It is explained by instability of the national currency and seasonal increasing demand with simultaneous decreasing domestic production. Agricultural producers are especially confused by the fact that despite the worldwide fall in prices for energy resources and mineral fertilizers, last year prices for basic nitrogen fertilizers on Ukrainian market were in average 30-35% higher than export prices from Ukraine. It means that producers of mineral fertilizers consciously sell their products to local farmers at inflated prices.

            Chemical companies declare unprofitability of production under situation of current level of prices for gas and mineral fertilizers, that forces them not to use their production capacities to the fullest extent. Thus, since December 28, 2015, it was stopped one of two installations for ammonia production at JSC "Odessa Port Plant" (hereinafter – "OPP"). At the same time, the Ministry of Agrarian Policy and Food of Ukraine informed that agricultural producers managed to buy only 16% of the required amount of mineral fertilizers as of January 16, 2016 that is 5% less last year indexe for the same date.

A serious problem is brewing also with suppliers of mineral fertilizers. Their manufacturers often require pre-payment for the goods with the postponement of deliveries for up to 60 days. All these creates an artificial outflow of operating assets from agricultural producers.

            Thus, the market today offers conditions whith inflated prices on the domestic market,  interruptions in the work of domestic plants and difficulties for farmers with purchasing the fertilizer, which in turn stimulates the growth of fertilizers imports in Ukraine. In 2015, the import of mineral fertilizers in Ukraine has increased on 19.5% in comparison with 2014.

At the same time, almost all the products manufactured at the domestic chemical plants have been exported. For instance, following the information from official site of OPP, near 85% of their products they export to more than 30 countries. However, the Ministry of Agrarian Policy and Food of Ukraine declares that agricultural enterprises are provided with necessary fertilizers only on half. Thus, as of February 5, 2016, there are only 439 th t of nutrients and fertilizers (46% of ordered), including nitrogen - 314 th t, or 46% of the ordered (in 2015 - 54%).

That is why the above mentioned associations ask to take effective measures:

-          to stabilise the situation on the market of mineral fertilizers in Ukraine;

-          to immediately cancel the anti-dumping duies on fertilizers;

-          to prevent the introduction of new duties on fertilizers;

-          to ensure implementation of the Law No.2558a “On amendments to certain legislative acts of Ukraine on deregulation in agricultural sector" signed by the President of Ukraine Petro Poroshenko on  December 31, 2015 in the part of unobliging registration of typical common mineral fertilizers;

to organize and hold a transparent and competitive privatisation of the state owned enterprises-producers of mineral fertilizers, including "Odessa Port Plant".