We urge all agricultural companies and associations to mobilize and not allow the final monopolization of the fertilizer market.

On March 3, a hearing of the Interagency Commission on International Trade (ICMT) was held on the introduction of restrictions on imports of mineral fertilizers from third countries other than Russia. The only agrarian association that participated in them and defended the interests of agricultural producers was the Ukrainian Agri Council. UAC has strongly opposed any restrictions on imports of fertilizers into Ukraine from third countries other than the Russian Federation, as it will lead to their shortage, as a consequence, a rise in price and the ultimate market monopolization.

Despite the fact that imposing an embargo on the supply of fertilizers from Russia has led to significant losses to farmers, as fertilizer prices have raised to 60%, the agrarian community has come to understand this political decision, since the Russian Federation was recognized as an aggressor country.

However, now that the part of fertilizers coming from the Russian Federation has been replaced by the trading partners of Ukraine - EU countries, the Persian Gulf, North Africa, as well as Turkey, Kazakhstan, Belarus, Georgia, China, the USA - there is no reason  to restrict imports from them. Moreover, any further restriction of competition in the supply of fertilizers to Ukraine will lead to further price increases and market monopolization.

“We are well aware of the situation that arose in the fertilizer market about a year and a half ago, when prices soared to the sky and ammonium nitrate was worth over UAH 11,000 / t. We also share the Government's position on banning the import of fertilizers from the aggressor country. That is why over the last year and a half, UAC, together with the First Ukrainian Agricultural Cooperative, have started to supply mineral fertilizers from Turkey, Kazakhstan, Belarus, Georgia and the European Union. This made it possible to reduce prices by almost half and provide farmers with fertilizers with high quality and  at a fair market price. However, such actions are not pleasing to the Ukrainian monopolist, ”Chairman of the UAC Andriy Dykun explains. 

The largest fertilizer producer in Ukraine is the enterprises of “Osthem” group of companies owned by Dmytro Firtash. It was “Osthem” that asked the ICMT to investigate the import of mineral fertilizers into Ukraine, saying they are wishing to protect the domestic producer and give impetus to the development of the chemical industry. However, the Antimonopoly Committee of Ukraine (AMCU) has already confirmed the existence of facts that may indicate abuse of the monopoly position of “Osthem”. Therefore, limiting the import of fertilizers from other countries will only favor “Osthem” as a monopolist in the market. At the same time, supplies of fertilizers from other countries help to maintain balance and competition in the domestic market.

Over the past year, PUSC has imported 50,000 tonnes of fertilizers from Turkey, Lithuania, Latvia and other European Union countries. Each consignment of goods is thoroughly checked for its origin.

“In late 2018 - early 2019, the State Fiscal Service enforced an enhanced regime of control over fertilizers imported to Ukraine. No case of unconfirmed origin of mineral fertilizers was found. That is, there were no Russian fertilizers supplied from Ukraine's partner countries. Therefore, there is currently no reason to restrict imports from them. It is pure manipulation and a change of concepts when we say that Russian fertilizers are all over the world and it is necessary to ban imports altogether, ” Andriy Dykun comments.

Given the situation with the land market and low prices for agricultural products, the rise in fertilizer prices is simply unacceptable. Therefore, UAC calls on the Government and all agricultural companies and associations not to allow an artificially created monopoly.

“UAC, as a public association, is already working in this direction - we had a meeting and enlisted the support of the Lithuanian Seimas that declared their readiness to raise the issue at the level of Brussels and Kiev, should such a ban be introduced. Also, we appeal to all representatives of the agricultural sector to get involved, because fertilizer prices are not only a matter for the UAC participants. It is important not to allow the monopolist to return in the light of a change in the Government and the turbo-regime, ” Chairman of the UAC summarized .