The All-Ukrainian Agrarian Council (AAC) has appealed to the Ukrainian government with an urgent request to stabilize the nitrogen fertilizer market. Due to reduced supplies on the world market and a shortage of ammonium nitrate in the country, urea prices have reached $730 per ton. Farmers warn that without proper provision of fertilizers, crop yields may decrease by more than 20%.

This was reported by the AAC press service. In an appeal to the Minister of Economy, Environment and Agriculture of Ukraine Oleksiy Sobolev, the association emphasizes that global events in the Middle East have significantly reduced the world supply of mineral fertilizers, which has already led to a rapid increase in prices.

“The existing supply on the world fertilizer market is unable to meet the needs of farmers. "Urea exchange prices have already reached $730 per ton and have prospects for further growth," the VAR report says.

The situation is complicated by the domestic deficit of ammonium nitrate, the import of which is currently limited. Farmers warn that without urgent measures, the shortage of nitrogen could lead to a decrease in yields by more than 20% and will negatively affect the state of the entire agricultural sector.

At the same time, the VAR notes that Ukraine has the resources to quickly launch its own fertilizer production. Due to temporary shutdowns of CHPs, gas consumption has decreased, and gas reserves have increased by 3 billion m³ compared to last year. This creates conditions for the urgent resumption of nitrogen fertilizer production at domestic facilities.

Farmers call on the government to launch the Odessa Port Plant for the production of ammonia and urea as soon as possible. In addition, the VAR proposes to abolish import duties on urea, ammonium sulfate, ammonium and calcium ammonium nitrate. The implementation of these measures, according to the association, will help stabilize fertilizer prices and minimize risks to the future harvest.