Mineral fertilizers will continue to go up

the Result of the imposition of anti-dumping duties on Russian nitrogen fertilizers will increase the prices of domestic urea, notwithstanding the fact that already in April he will dominate the domestic market.

this was announced by Director of "Infoindustriya" Dmitry gordeychuk.

He said that "during the first month after the announcement of the introduction of fees, the price of urea has increased by more than 10%. Now it is shipping to 10 thousand UAH/ton, while the price of ammonium nitrate is 8.5 thousand UAH/ton."

Previously, the ratio between the value of nitrate and wheat in Ukraine was 1.5 to 1.6. Now it grows to the level of 1.8. This means that to purchase 1 ton of nitrate the farmer will be able to realize 1.8 MT of wheat of 3 class. In Europe this ratio is in the range 1.8-2, however, where farmers receive subsidies that increase the profitability of the business. Ukrainian farmers will buy fertilizer at the level of European farmers, while supporting agro-industrial complex the government has only allocated 4 billion.

Today nitrate at the station of the seller to the 7.6-7.8 thousand UAH/t, and in warehouses its price is 8.2-8.5 thousand UAH/t during the season, the price may rise by 10-15%, maybe even up to 30%. The main reason is the devaluation of the hryvnia and anti-dumping duties.

Six Ukrainian nitrogen enterprises could meet the demand of domestic farmers. The cost of fertilizers amounts to 15-20% of the cost of agricultural products. The reduction in the price of fertilizers will enhance the competitiveness of grain, which will provide producers with additional funds, and the state – currency income, has added D. Gordiychuk.

Recall that 28.02.17 for a period of 5 years, introduced anti-dumping duties in the amount of 4.19-of 31.84% fertilizer Russian origin to protect the domestic market of Ukraine from import of fertilizers at dumping prices.