Business news from Ukraine

UKRAINE EXPORTS NITROGEN FERTILIZERS FOR $64 MLN, IMPORTS FOR $288 MLN IN 2018

Ukraine in 2018 exported 341,442 tonnes of nitrogen mineral or chemical fertilizers (according to foreign economic activity code 3102) for $64.446 million and imported 1.358 million tonnes for $288.002 million.
According to the State Fiscal Service, nitrogen fertilizers were delivered to Turkey for $25.092 million, China for $10.3 million, to Romania for $7.584 million, and other countries for $21.47 million.
Last year, imports of nitrogen fertilizers were made from Belarus for $59.684 million, Uzbekistan for $46.235 million, Lithuania for $33.713 million, and other countries for $148.371 million.
Thus, exports of fertilizers last year halved, and in value terms fell by almost two times. Imports of fertilizers decreased by 22.1%, in value terms by 14.6%.
In addition, in 2018 Ukraine exported 40,209 tonnes of ammonia (code 2814) for $9.498 million, imported 441,607 tonnes for $137.333 million.
In 2018, ammonia was exported to Turkey ($4.54 million), Morocco ($2.414 million), Bulgaria ($1.921 million), other countries ($623,000). In 2018, ammonia was imported from the Russian Federation ($134.563 million), Belarus ($2.754 million), Germany ($14,000), and other countries ($2,000).

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CHERKASY AZOT STARTS PRODUCING NEW TYPE OF FERTILIZERS

PJSC Azot (Cherkasy), part of Dmytro Firtash’s Group DF, has started producing new type of mineral fertilizers – a urea-ammonium mixture with sulphur, the enterprise has reported in a press release. Azot Board Chairman Vitaliy Skliarov, the specialized fertilizer segment, which includes the urea-ammonium mixture with sulphur, is actively developed in Ukraine. The plant quickly launched new production.
In 2017, the volume of the Ukrainian market of the urea-ammonium mixture with sulphur was around 45,000 tonnes and demand on it continues growing. Production of the urea-ammonium mixture with sulphur was organized at the basis of the operating facilities of Azot. The production capacity is 36,000 tonnes a year. In September, the enterprise made a first experimental batch of 540 tonnes, which is ready for shipment to customers.
Skliarov said that Cherkasy Azot is not the first Ukrainian enterprise, which started producing the urea-ammonium mixture with sulphur. However, the plant has market advantages compared with small enterprises, which are involved in artisanal production.
The share of ammonium in the finished product is 26-28.5%, the share of sulphur is 2%, ammonium nitrate – 35-37%, ammonium sulfate – 8.2-8.6% and urea – 27-30%.

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GROSSDORF TO OPEN NEW PLANT FOR LIQUID CARBOMIDE-AMMONIUM FERTILIZERS PRODUCTION IN UKRAINE

Agrochemical company Grossdorf (Cherkasy) will open a plant for the production of liquid carbomide-ammonium fertilizers near Khmilnyk (Vinnytsia region) with a capacity of 70,000 tonnes per year and a storage capacity of 3,000 tonnes in the middle of December, the press service of the company has said. “We’ve found a site that suited us, and prepared it properly. Currently, work is underway to manufacture equipment for the plant, then it will be tested at the main production facility, transported to Khmilnyk and installed. These works will take approximately one and a half or two months. Thus, the production will be launched by the end of 2018, and agricultural producers of this region will be provided with carbomide-ammonium fertilizers in the spring season of 2019,” Grossdorf Commercial Director Serhiy Ruban said.
He noted that by the end of the year Grossdorf’s production capacity will reach 480,000 tonnes.
The company said over the past year its strategy has changed somewhat. If earlier focus was made on rail transportation, now the company plans to build factories in the main regions where there is a significant need for fertilizers. This is the third plant that Grossdorf group will launch this year.
Grossdorf agrochemical company was established in 2016. It is engaged in production, import, transportation of fertilizers, as well as providing services for introduction of anhydrous ammonia. Its core business is the supply of basic fertilizers for precision farming.

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GROSSDORF AGROCHEMICAL COMPANY LAUNCHES SECOND PLANT FOR PRODUCTION OF LIQUID CARBOMIDE-AMMONIUM FERTILIZERS IN ODESA REGION

Grossdorf agrochemical company (Cherkasy region) in Sarata (Odesa region) has launched new production of liquid carbomide-ammonium mixture fertilizers with a capacity of 60,000 tonnes per year. According to a company press release, with the opening of the plant its capacity in the area of liquid fertilizers production rose to 410,000 tonnes per year.
“Grossdorf receives raw materials from Europe and Central Asia, but transportation of these raw materials for production of carbomide-ammonium mixture from the central regions to the southern regions is expensive. Therefore we built a production base and a raw materials storage base in Sarata. The plans for 2019 are to diversify the markets for the supply of raw materials,” the release says.
According to Grossdorf Commercial Director Serhiy Ruban, the capacities launched will allow the company to provide the entire Odesa region with carbomide-ammonium fertilizers, and also consider the possibility of exporting fertilizers from the production unit in Sarata to Moldova.
Grossdorf (Cherkasy) was established in 2016. It is engaged in production, import, transportation of fertilizers, as well as providing services for the introduction of liquid ammonia. The company’s core business is the supply of basic fertilizers for precision farming.

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FARMERS HAVE FULL AMOUNT OF FERTILIZERS FOR SOWING CAMPAIGN

Ukrainian farmers have the full amount of mineral fertilizers required for carrying out spring field works and the expansion of safeguard measures for the import of mineral fertilizers would not create an artificial shortage of fertilizers, Ukraine’s First Deputy Prime Minister, Minister for Economic Development and Trade Stepan Kubiv has said.
“As of today, the market of mineral fertilizers is fully saturated for the spring field work, which was confirmed by the Ministry of Agricultural Policy and Food, profile associations and producers. Last year, with the efforts of the government, Verkhovna Rada deputies and associations, we launched the fertilizer producing enterprises, but they have not yet loaded their facilities in full. I’m talking about the Odesa Port-Side Plant, Sumykhimprom, Severodonetsk Azot, Cherkasy Azot and others,” he said, responding to a question from Interfax-Ukraine at a press briefing in Tuesday.
The first deputy prime minister also said that 12 safeguard trade measures are in effect with regard to the import of mineral fertilizers from the Russian Federation, including 10 anti-dumping measures, as well as countervailing and special measures.
According to Kubiv, there is no artificial shortage of mineral fertilizers for spring works, but there are questions to the group of fertilizers used in autumn works.
“Now we have a big request to the deputies that in the autumn we would settle this issue not by a resolution, but at the legislative level,” he said.
Kubiv said that the decision of the Interagency Commission on International Trade to expand the effect of anti-dumping measures on the import of ammonium nitrate from Russia to Ukraine with an increase in duties on the import of mineral fertilizers from Russia to 42.96%, made on March 26, was unanimous.

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