According to the Russian news agency Interfax, Russia is expected to raise fertilizer production by 10% in 2024 and increase export volumes. Andrey Guryev, the Chairman of the Russian Fertilizers Producers Association, stated that in 2023, Russia's production and export of mineral fertilizers are expected to recover to the levels of 2021.
Guryev said, "According to preliminary data, in the first 11 months of 2023, fertilizer production in the Russian Federation increased by 9% compared to the same period last year, exceeding 53 million tons. If the current capacity utilization remains unchanged, it will reach the level of 2021 (59 million tons) by the end of the year." Calculating based on the current capacity utilization, fertilizer production in Russia is expected to increase by 10% in 2024, reaching over 64 million tons, and export volumes will increase to the level of 2021.
Guryev pointed out, "The priority export destinations for Russian fertilizer producers are Global South Countries, with three-quarters of the exports already delivered. The largest markets currently are India and Brazil." He also stated that fertilizer exports to Brazil increased by 1 million tons (16%) in the first 10 months of 2023, reaching 6.3 million tons.
Guryev reiterated that he believes it is necessary to lift the export quota system for Russian fertilizer. He stated, "Fertilizer producers are still restricted by export quotas, and under this system, each transaction requires obtaining a new export license. To restore effective control over exports, we believe regulatory authorities should abandon the practice of setting quantity restrictions and issuing licenses based on one-time non-taxable quotas and instead adopt a permit procedure for fertilizer exports (by issuing a general license for fertilizer exports)."
Guryev emphasized that the fertilizer demand for this year in the Russian agricultural sector has been fully met by mid-November and supplies for fertilizer seeding for next spring have begun. As of December 20, based on the resources accumulated since the beginning of the year, the amount of fertilizer purchased by Russian farmers increased by 5% compared to the same period last year, reaching 5.8 million tons.
Attention: The above information is only for commercial reference and Kelewell is not responsible for the authenticity of the data.
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