Today, on October 6, a meeting of the Protest Committee of Farmers of West Pomerania was held in the West Pomeranian Provincial Office, among others. With the representative of Grupa Azoty. What information was obtained?
the prices Fertilizers They are terribly tall and rise all the time. Farmers don’t know what to do, wait or buy. They send requests for help and check why. They know that what is so problematic for them today will affect the brewing of all consumers, including themselves, tomorrow.
The meeting was attended on behalf of Grupa Azoty by Marius Grab, Vice Chairman of Grupa Azoty SA; Grupa Azoty Chairman Zakłady Chemiczne “Police” SA, who spoke on behalf of the entire group. The event was broadcast online.
tough fertilizer market
The situation is tragic. As for production Fertilizers We are faced with a dilemma, either we raise prices or we shut down fertilizer production – said Grab.
He confirmed the recent increase in the prices of raw materials for the production of fertilizers. Yesterday, the price of gas was 100 euros per megawatt-hour. Year after year, we were paying 15 euros during this time. 800 percent extra I’m not talking about all the other ingredients, for example, looking from a police perspective, potassium salt 125% extra, phosphorite 60%, sulfur 30%, sulfuric acid 50%. And only for this last quarter – a representative of Grupa Azoty confirmed.
He also noted that most producers of mineral fertilizers either drastically reduced their production or simply closed their factories. In Great Britain, the government had to pay extra to “reopen” the factory because the food industry was in danger.
– We want to show the background in which we are moving today. Yesterday, as a participant in the European Union of Fertilizer Producers, we filed an official complaint asking for immediate action. It was introduced by all major producers in Europe. This situation is unacceptable. He said we have to take immediate action to explain why the price of gas in Europe, at the official rate in Russia of $2, is more than $30.
– This is a clear attempt to manipulate the market and requires investigation by European agencies. He added that we have information that the European Union is looking for a mechanism to buy gas outside the systems that operate today.
As he emphasized, prices are not set on a regular basis. – We have an increase in raw materials but the effect is delayed, often a month or two. Each component becomes more expensive and this is not an increase of 10-15 percent, but 800 percent. He said.
What are the prices in the future?
– We’re talking about this quarter, but we’re also talking about next year’s quarter. It will not be cheaper. All raw material offers more expensive. This is hysteria in the market. I don’t know if it can be managed in the near future, until the middle of next year, Grab confirmed.
– In addition, there are many strange behaviors of countries such as India, China and Brazil where all the money is spent. He emphasized that all fertilizers were purchased and tenders were announced for historical quantities of ammonia or nitrogen fertilizers. The situation is unprecedented.
Fertilizer prices have been going crazy in recent days. why? First of all, because we have record gas prices. Natural gas accounts for 60-80% of production costs in the case of nitrogen fertilizers. In addition to political factors among the major fertilizer producers (China, Belarus). (1) pic.twitter.com/OMCsT6FyOF
Jacob Olipra October 6, 2021
Questions from farmers
During a meeting with a representative of Grupa Azoty, the farmers emphasized that they should plan for the long term. They do not know how much they will sell their crops. How, then, do they invest in such exorbitant means of production?
– We weigh this risk similarly. Likewise, we have to sign long-term contracts today. Moreover, we must sign it, not knowing whether these raw materials will be in general: phosphorite, potassium salt – his answer is extract. The market is not behaving normally.
Another farmer said: We can’t stand alone. The farmer mentioned how recently UAN prices have risen, which last year cost several hundred zlotys, and now up to 2600 zlotys / net ton.
– With these fertilizer prices we are gone. He emphasized that it was impossible to produce anything without nitrogen. Why do you keep these fertilizers in stock? The cars are coming and the drivers are saying the stores are full? – He was asking.
– There are no fertilizers in the warehouse of the Grupa Azoty group. I have not seen in the history of the police empty warehouses, which were left empty for half a year. We withdrew all exports until these fertilizers reach Poland. Fertilizer export stopped, recently I saw about 500 tons of fertilizer exported recently. Everything goes to the country – answered Marius Grab.
The farmers also asked how much margin the farmer finally pays. What exactly is in the relationship between producer, distributor and grower. The president did not explain these data under the pretext of a trade secret.
How do farmers see the meeting?
Because its connotations were directed by the fertilizer producer to the rise in prices resulting from the increase in production costs, especially the rise in gas prices. The company reported that it is constantly calculating profitability.
– We took it two-sided, because we don’t know what it is either. We think the chief of police is telling the truth. We have signs of fertilizers in warehouses, the boss says factories are not. How can distributors get it? We do not know where the truth lies, Stanisław Barna, a representative of the protest committee, tells Farmer.pl.
– This is a dark scenario for us. We do not know at what prices we will sell agricultural products. We have additional financial burdens in the form of loans, lease contracts, personnel maintenance, etc. We know that not only the means of production become more expensive, but also the services. He stressed that the price is in front of us and there will be less money.
Barna noted that another meeting has already been arranged on November 4, where farmers have specific requests to respond to demands that have been made for some time. – We have three things. First, fertilizer prices. Second, deferring land purchase payments from the Water Resources Department. Thirdly, the fourth drought hit us in the Zachodniopomorskie province and we have no help in this matter – he explained. He will transmit them to Voivodeship and the deputies who were also present at today’s session.
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