Agriculture associations consider false and unacceptable statement of the Federation of Employers of Ukraine (FEU). FEU asks agricultural and chemical industries representatives to develope the memorandum about the permissible level of quotas on mineral fertilizers import in Ukraine.

This position is held by the All-Ukrainian Agri Council, the Ukrainian Agrarian Business Club, the Agrarian Union of Ukraine, All-Ukrainian Congress of Farmers, Union of Producers, importers and traders of agrochemistry.

Certainly, the associations declare that members of key associations, which is the majority of agricultural producers of Ukraine, don't support cartel agreements on the market of mineral fertilizers, and didn't authorize associations' representatives to sign them.

The members of the agricalture associations insist that they make a stand against the introduction of quotas on mineral fertilizers import to Ukraine (as well as additional restrictions on import in any other form) and believe that there are no reasons for it.

According to farmers' opinion, the real problem of the Ukrainian mineral fertilizers market is the abuse of a monopoly position from the company group "OstChem". It is the presence of a monopoly, that allows keeping high mineral fertilizers prices despite of the fact that raw materials prices - natural gas in Ukraine are lower than in the EU.

Besides, trying to blame independent traders for this imbalance doesn't stand up to criticism, as the largest extent of trade in fertilizers falls on intermediary companies are affiliated with the monopoly producer. And therefore - it is nothing more than an attempt to manipulate the opinion of the members of the Interdepartmental International Trade Commission.

According to the APK associations, ensuring the balanced work of the agricultural and chemical industries and their competitiveness growth is possible only if the following requirements are met:

  1. demonopolization of the nitrogen fertilizer market through voluntary implementation by the company group "OstChem" of the Antimonopoly Committee's Statement (ref. September 5, 2019, № 598 in the case №126-26.13/67-15.)
  2. introduction of clear operation rules of the major fertilizer producers in Ukraine in order to guarantee fair mineral fertilizers prices for farmers, in particular the departure from the practice the basic extent sales and profits to affiliated trading companies, which causes manufacturers artificial losses and degradation of production capacity.

Only the presence of healthy competition can be a reliable basis for sustainable development and the chemical and agricultural industries competitiveness. The introduction of quotas or other restrictive measures will harm the national economy and preserves the oligarchic monopolization of the chemical industry.

Tuesday, 16 June 2020

 

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