Russia’s largest mineral fertilizer distribution network,* PhosAgro-Region (PhosAgro Group), increased its supplies to the domestic market by 7.1% from January through June 2024, reaching 1.74 million tonnes. PhosAgro products accounted for about 80% of deliveries.
“Our strategic priority has been and remains Russian agribusiness, and sales growth in the first half of the year was largely driven by our growth in the Russian segment. Over the past five years, nearly RUB 4 billion have been invested in the development of PhosAgro-Region’s distribution network, both to consolidate its presence in regional markets and to create new opportunities for Russian consumers. Ensuring a reliable and uninterrupted supply of mineral fertilizers to Russian agribusiness is our top priority for the second half of 2024, and we will focus our mining, processing and logistics assets on achieving this goal,” said PhosAgro CEO Mikhail Rybnikov.
According to Andrey Vovk, General Director of PhosAgro-Region, phosphate-based fertilizers and NPK fertilizers accounted for a major part of the sales increase in the first half of the year.
“Russian farmers learned from last year’s rail supply issues and decided to purchase phosphate-based and NPK fertilizers for autumn field work in advance this year. This enabled them, on the one hand, to build fertilizer stocks before a spike in demand and, on the other hand, to buy fertilizers for autumn field work at off-season prices and secure shipments by Russian Railways in advance,” said Mr Vovk.
Demand for NPK fertilizers with micronutrients also continued to grow in the first half of the year following a 60% increase over the past two years. Major consumers are increasingly buying fertilizers of specific colours, which enables them to track their purchases throughout the supply chain and to prevent theft and resale, thus curbing the grey market for fertilizers.
PhosAgro-Region continues to enhance its logistics infrastructure, which now includes a network of 34 distribution centres with a total capacity of around 900 thousand tonnes.
“With our extensive storage and transshipment infrastructure in regional markets, we can avoid delivery delays during the summer season, when passenger trains take priority, especially in the Southern Federal District and the North Caucasian Federal District. By enabling farmers to pre-order products and establish reserves at their own facilities, we ensure a steady supply of mineral fertilizers even when Russian Railways is under pressure. We are fully prepared for autumn field work,” said Mr Vovk.
*By total volume of fertilizer supplies and by fertilizer storage capacity
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