Production of nitrogen fertilizers in Ukraine in 2020 increased 35% compared to 2019, to a record 5.1 million tonnes in five years. The production of urea increased by 47%, ammonium nitrate – by 8%, urea-ammonium mixture – by 29%, according to the Association Ukrainian Agribusiness Club (UCAB).
According to its data, there are five large plants producing nitrogen fertilizers in Ukraine: three plants of the Ostchem Group (in Cherkasy, Rivne and Severodonetsk), the Dniprovsky Plant of Mineral Fertilizers, a part of JSC Ukragrokhimholding, and the State-owned Odesa Port-Side Plant (in the Government's list of privatisations).
UCAB said that the plants of the Ostchem Group belonged businessman Dmytro Firtash (presently in jail in Austria) last year produced two thirds of all nitrogen fertilizers in Ukraine, while the largest increase (2.5 times compared to 2019) was shown by the Severodonetsk plant and the Odesa Port-Side Plant.
According to the words of UCAB Director General Roman Slasten posted on the website, the growth in nitrogen fertilizer production is associated with the relatively low price of natural gas in 2020, a complete embargo on mineral fertilizers from the Russian Federation, as well as high demand for these products in the domestic and foreign markets.
According to the expert, Ukrainian agricultural producers continue paying additional margins to the domestic producer, since prices for nitrogen fertilizers in Ukraine last year were 15-25% higher than export prices.
The only restraining factor in price growth in our monopolized fertilizer market is the availability of imports from Belarus, the EU countries and from other trade partners of Ukraine.
Roman Slasten, Director General of UCAB
In addition, imports of nitrogen fertilizers to Ukraine in 2020 more than halved, to 816,000 tonnes in kind and to $152 million in monetary terms due to the growth of domestic production. The largest share of imports (46.7%) was occupied by ammonium nitrate.
According to UCAB, the geography of fertilizer importers changed with the introduction of a complete embargo on mineral fertilizers from the Russian Federation in 2019. Ukraine in 2020 imported nitrogen fertilizers from 32 countries. The largest suppliers were Belarus with a share of 29%, followed by Poland with 23%, Georgia with 13%, Lithuania with 10%, Bulgaria with 10%, and Kazakhstan with 6%.
Source: UCAB
