
Domestic producers are not satisfied with the prices for fertilizers inside the country. They are looking for an alternative. Agravery.com talked to farmers and learned about their attitude to the current situation on the domestic fertilizer market.
In order to cover the problem of overvalued prices, monopolies and deficits on the domestic fertilizer market, on May 16, in the framework of Agri Invest Forum 2018, the first discussion of representatives of the agrarian sector and the chemical industry will take place in Ukraine.
Case Husing, "Kishchentsi" LLC, Cherkasy region.
- We ordered fertilizers in advance, so we had everything we needed before the sowing. But in Ukraine there is a monopoly on the fertilizer market, and this certainly influences prices. As a result, prices on the domestic market are higher than abroad. Through the First Ukrainian Agricultural Cooperative "FUAC" we bought fertilizers from the Baltic States, which turned out to be cheaper by almost 2 thousand UAH. Our cooperation was fruitful.
Denis Sergienko, "Lebid-Agro" LLC, Rivne region.
- In my opinion, the restriction of imports of Russian nitrogen fertilizers in the season of their active introduction is critical for any manufacturer. Any "artificial" rise in prices will lead to loss of the commodity producer due to increased costs, or reduction of yield potential, since some farmers will be forced to reduce the volume of procurement and, accordingly, will not be able to provide crops with a sufficient nitrogen. Who benefits from this? Only a monopolist of the market for nitrogen fertilizers - the group Ostchem Dmitry Firtash. Does it have anything in common with protecting national interests? No, since Russian gas is up to 90% in the structure of nitrogen fertilizer production in Ukraine.
Sergiy Saus’, “Agrotech” LLC, Kirovograd region
- Domestic fertilizers are so expensive because of the monopoly situation on the market of a particular manufacturer. If there was competition on the market, prices would be different. But there is always an alternative, for example, the Baltic, Polish fertilizers. They may even be better in quality. We bought Polish fertilizers through "FUAC", as well as fertilizers from Spain. We do not haggle on a particular manufacturer. Through the "FUAC" prices were fairly democratic - about 12% lower than the competitors’. We are pleased with the cooperation.
Katerina Ogreba, owner of "Ogreba O.V.", Khmelnytsky region
- Prices for fertilizers on the domestic market are flooded. They are inflated because the true fertilizer market in Ukraine does not really exist, there is no competition. We have a monopolist. With regard to the policy of restricting the import of Russian fertilizers, of course, it is better to develop its own production within the country. But there is always an alternative - European, in particular, Lithuanian fertilizers. In the future, I plan to buy fertilizers through the cooperative "FUAC" - so it turns out, firstly, cheaper, and secondly, more reliable.
Viktor Kosyuk, owner of "Vlasnyk", Khmelnytsky region
- Fertilizers are expensive. Nitrogen fertilizers in this year went up by about 20% compared with last year, maybe even more. At the same time, the quality of domestic fertilizers is inferior to the import. The profit from them is less.
Oleksandr Slipets, owner of "Progress", Lugansk region
- We bought Ukrainian fertilizers, both Russian and Belarusian. The price for Russian fertilizers was most profitable, with the fact that the domestic fertilizers produced by the Severodonetsk Azot Association territorially were located much closer, logistic costs were absent. On the territory of Ukraine there are own chemical enterprises, so the authorities have to do everything to ensure that they work and produce affordable and quality product. If we will give all the earned money to Europe, Russia and other countries, there will be no business.
Dmitry Braga, a farmer from the Donetsk region
- Do they want to restrict the import of Russian fertilizers? Please, I'm all for this. But it is necessary to do something with Firtash's monopoly. All Firtash factories work, it's the same representative of Russian business here, in Ukraine. Therefore, the question is controversial. We bought Polish and Ukrainian, and partly Russian fertilizers, there are no analogues. Most of all I like Polish and Lithuanian fertilizers in quality.
Thursday, 3 May 2018