Ukraine’s mineral fertilizer market in search of stability

23.11.2017

In Ukraine, the relations between growers and mineral fertilizer manufacturers have been tense for a long time now; the parties have not yet succeeded in finding a compromise solution and establishing meaningful cooperation.

It is worth reminding that many growers fell victims to the chemical industry in the spring of 2017, when chemical plants of OSTCHEM Group, which is controlled by Dmytro Firtash, received roughly UAH 2 Bl in prepayment from farmers for 300 KMT of fertilizers, but the manufacturers have not yet managed to supply the pre-paid products to them.

The current situation is fueled by a long-running conflict with NJSC Naftogaz Ukrainy, whom the chemical monopolist blames for shortfalls in gas supply.

As before, the stumbling block that brings imbalance to Ukraine’s fertilizer market and poses an existential threat to the national chemical industry is defining criteria for the substantiation of Ukrainian product prices and elaborating a model of effective performance of the domestic market.

Participants of the Ukrainian mineral fertilizer market have no single opinion about the approaches to pricing of national products. A few main options are under consideration now.

UkrAgroConsult offers several scenarios of the mineral fertilizer market development in the medium-term.

Full version of the article is available to subscribers for weekly market report “AgriNews, Kyiv” and “Online market review” by UkrAgroConsult.

 

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