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What is the production of fertilizers in the region?

Какво е производството на торове в региона?
As we already wrote, the Azomureş company announced that it was forced to stop the production of ammonia and fertilizers in December, due to the lack of a clear strategic commitment from the authorities, a fact that will have a negative impact on Romanian industry and agriculture.

Azomureş CEO Josh Zaharias warned of a looming crisis in Romania's agriculture and industry and pointed to cost pressures from local inflation, anti-competitive practices and a future 1% income tax.

According to him, his company also faces other challenges that are rooted in the lack of action by the authorities, including gas subsidies in Bulgaria, showing that Romania does not have a similar policy and as a result, Bulgarian fertilizer imports into Romania are increases.

At the expense of our northern neighbor, the situation in Ukraine seems completely opposite. In 2023, Ukraine produced 2.05 million tons of nitrogen fertilizers - 81% more than the previous year, the electronic publication Infoindustria reported. Compared to 2021, however, their production in Ukraine has shrunk by more than 60% from the 5.2 million tons reached then.

According to fertilizer market expert Dmytro Gordeychuk, production in Ukraine has grown thanks to stable electricity supplies, low natural gas prices and relatively strong fertilizer consumption.

"Although fertilizer consumption at the end of 2023 decreased, the total amount purchased increased. Imported quantities of fertilizers increased actively in the first quarter, but already in the second they started to decrease. Although the total imported quantity of only nitrogen fertilizers from the beginning of the year to December 18 exceeded 1.08 million tons, the market is ready to absorb much more", believes Gordeychuk.

It is expected that in the spring of this year, Ukrainian farmers will invest at least 800,000 tons of ammonium nitrate and up to 600,000 tons of urea. Part of the quantities have already been purchased, and the forecasts for the beginning of 2024 are that the farmers will have secured more than half of the nitrogen fertilizers they need for spring sowing. "There is, however, pent-up demand, and this will give producers the opportunity to raise prices," analysts comment.

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