Thursday, 20 April 2017

Is there a fertiliser supply problem in Ukraine?

Back in January this year I posted a blog (here) wondering if Ukraine had inadvertently engineered a fertiliser shortage.

The crux of the issue was should Ukraine delay the introduction of anti-dumping duties on Russian fertiliser until after parliament had passed a bill conferring zero duties on nitrogen fertiliser from other countries.

I signed that blog off by saying it was worth keeping an eye on the story then thought nothing more of it and, as I heard nothing else, assumed the story had resolved itself and the problem had gone away.

Then yesterday I was contacted by someone asking if I could confirm news on a fertiliser shortage in Ukraine as a contact of his in Kharkov had not received an order and the factory had closed.

While it’s not entirely unusual for suppliers in Ukraine to renege of orders (I once had a fertiliser company completely disappear, their office was literally empty when we went back) it did make me think of my January fertiliser shortage blog.

Then this morning, Ukraine’s Ministry of Agriculture announced that Ukrainian farmers are provided with fertiliser for the full range of spring field works with a whole load of statistics to back this up.

But then go on to say that farmers are worried about the shutdown of Ukrainian chemical enterprises as they must make full upfront payments for any nitrogen fertilisers orders and that farmers hoped for a quick recovery of factories to be able complete the contractual obligations to supply fertiliser in full.

Sounds like it’s still worth keeping an eye on this story.