Kernel, one of Ukraine’s largest agro-industrial groups, has started direct purchases of nitrogen fertilizer Anvistar from Polish producer Anwil S.A. of PKN Orlen Group as part of early preparations for the next agricultural season.
As the holding said on Facebook Wednesday, the fertilizer was delivered by truck and transferred to rail cars at the Polish-Ukrainian border, and the cargo is already on its way by rail to Kernel’s warehouses.
“We are purposefully expanding our network of partners, diversifying risks and experiencing a new quality of agribusiness products. I am sure that this was only the first step on the way to future partnership,” the holding quotes Igor Stelmashchuk, head of its Agribusiness commercial division, as saying.
As reported, Ukraine’s largest producer of fertilizers Ostchem of nitrogen holding Group DF Dmytro Firtash in 2022 reduced production by 66.9% in 2021 – to 1.754 million tons.
Among the main reasons for the reduction of production by Group DF was the loss of control over Severodonetsk Azot (Donetsk region), which managed to produce 0.05 million tons of nitrogen fertilizers until February 27, 2022.
In addition, the production cuts were caused by the destruction of logistics and distribution chains, reduced exports due to regulatory and logistical constraints, power outages due to the mass destruction of energy infrastructure, high gas prices, as well as a drop in solvent demand from farmers by at least 40%.
According to Group DF estimates, the fertilizer market in 2022 decreased by 45-50% – from 4.75 million tons to 2-2.9 million tons.
PKN Orlen has a dominant share in the oil products markets of Poland, the Czech Republic and the Baltic states.
“Before the war Kernel ranked first in the world in sunflower oil production (about 7% of world production) and its export (about 12%) and was the largest producer and seller of bottled sunflower oil in Ukraine. In addition, the company was involved in other agricultural products cultivation and sales.
The largest co-owner of Kernel, through Namsen Ltd. is Ukrainian businessman Andrei Verevskyi, with a 39.3% stake.
In FY2022 (July-2021 – June-2022), the holding posted net loss of $41 mln against $506 mln net profit in the previous FY. Its revenue decreased by 5% – to $5.332 bln, while EBITDA decreased 3.7 times – to $220 mln.
