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29 March 2024

News

01.08.2014

Mineral fertilizers price increase could cost more than 105.3 mln USD to Ukrainian farmers

Mineral fertilizers price increase could cost more than 105.3 mln USD to Ukrainian farmers

The Interdepartmental Commission on International Trade of the Ministry of Economic Development and Trade of Ukraine approved two resolutions concerning imports of mineral fertilizers to Ukraine from Russian Federation and Belarus Republic. This decision applies for ammonium nitrate and complex three-component fertilizers respectively. Due to insufficient level of production at the domestic market that could not fully cover the demand, Ukrainian farmers will have to pay additional 105.3 mln USD due to price increase. This was reported by the association Ukrainian Agribusiness Club (UCAB).

According to the monitoring of domestic prices on fertilizers from manufacturers, held by the Ministry of Agricultural Policy and Food of Ukraine, certain types of fertilizers prices increased in the last 6 months on 10.6-36.1% as of July 18, 2014. The smallest growth experienced price of ammonium nitrate, which increased on 29.2 USD/t or 10.6%. The highest growth experienced: UAN - on 20.7% to 276.7 USD/t, Ammophos (12:52) - on 23.2% to 508.2 USD/t and anhydrous ammonia - on 36.1% to 577.8 USD/t. The main reasons are: the devaluation of the hryvnia and the gas price increase. Due to such price movements Ukrainian agricultural producers will have to pay extra 32 mln USD till the end of this year.

Ukrainian market also feels other threats. The Commission increased anti-dumping duties three times to max. 36.03% on imports of ammonium nitrate from Russian Federation. Russia is supplying 99% of all the import of this good and have a share of 17% on the Ukrainian market. An additional losses of farmers till the end of 2014 could cost 13.5 million USD directly from increased duties on imported goods and 11.9-17.8 million USD from the effect on domestic prices.

Another one decision is to provide special duties on complex three-component fertilizers imported from Belarus as a reaction on discriminatory actions concerning the confectionery from Ukraine. New customs duty rate on the level of 55.59% makes Belarusian import non-profitable. According to Ukrainian Agribusiness Club calculations Ukrainian farmers would have additional 24.7-42.0 million USD losses due to this action.

“The changes in agricultural branch and whole economics of Ukraine put us in a position in which we should firstly think about saving of existing positions and creating of conditions for further development. Ukrainian farmers do not taking to account the producing country, they just want to have a good quality product for economically reasonable price. So, in this regard, Ukrainian Agribusiness Club sent two letters to the Minister of Economic Development and Trade of Ukraine Pavlo Sheremeta to revoke abovementioned decisions”, said Igor Ostapchuk, advisor on agriculture markets of UCAB.

  

Association "Ukrainian Agribusiness Club"  

3 floor, 146 Zhylianska Str.

01032 Kyiv, Ukraine

Phone/Fax: +380 44 2362097/79

kotyk@ucab.ua 

Tetiana Kotyk 

www.ucab.ua

 

The Association "Ukrainian Agribusiness Club" (UCAB) www.ucab.ua was founded in 2007 to protect the economic and professional interests of players of agribusiness in Ukraine. UCAB is a unique platform in Ukraine for establishing business contacts between the leaders of agribusiness, improvement their work and dialogue with the government. UCAB actively supports Ukrainian producers in establishing and maintaining international business relations. The Association consists of the largest producers and processors of agricultural products in Ukraine.

 

 

 




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