Ukraine slashed nitrogen fertilizer output 78.3%, tripled imports in 2022 - Agrarian Policy Ministry

MOSCOW. Feb 15 (Interfax) - Ukraine produced 1.13 million tonnes of nitrogen fertilizers in 2022, down 78.3% from 5.2 million tonnes in 2021, Ukrainian media reported, citing a social media post by the Agrarian Policy and Food Ministry.

Imports increased 3.1-fold, from 1.4 million to 4.3 million tonnes.

The ministry said nitrogen fertilizer production previously exceeded imports due to the uninterrupted work of Rovnoazot, Severodonetsk Azot and Cherkasy Azot, while Dneproazot also worked at intervals. Last year, only Rovneazot and Cherkassy Azot remained operational.

Agrarian Policy and Food Minister Nikolai Solsky said that prices for ammonium nitrate rose from UAH 27,000 to 37,000 tonne in October, which created a critical situation for farmers. He said farmers are usually guided by the rule that a tonne of ammonium nitrate should not cost more than 2.5 tonnes of wheat, and a tonne of UAN no more than 3-3.5 tonnes of corn, but last year the cost of fertilizers was exceeded by two- or three-fold.

The ministry said base nitrogen fertilizers cost approximately UAH 8,000-9,000 per hectare of corn, excluding top dressing. In addition, fuel costs have risen. Therefore, the final cost is not attractive for agribusiness.

"A lot depends on climatic conditions, because fertilizers work as a complex nutrient and the main thing is the weather conditions. But if a farmer reduces fertilizer applications by 30% or more, then yield can halve. So the support of international partners in this issue is very important for us," said First Deputy Agrarian Policy and Food Minister Taras Vysotsky.

Group DF, Ukraine's main fertilizer producer, estimates the country's fertilizer market decreased by 40-60% from 4.75 million to 2-2.9 million tonnes in 2022.