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The Reason for the Increase in Fertilizer Prices

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Monday, November 1, 2021
Plant Nutrition
Text Sun
Summary
Metin GÜNEŞ, Chairman of the Board of Fertilizer Manufacturers, Importers and Exporters Association: There has been a 90-200% price increase in fertilizers, which is one of the most important needs of plant production.
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The epidemic made agriculture more important for all countries of the world. The issues of food supply, food safety, and disruption of the food supply chain became a priority. Countries are developing policies that prioritize their own country's needs by making significant changes in their agricultural policies.

Fertilizer, which is one of the most important needs of plant production, became the most talked about sector that was most affected by these developments in 2021.

With the rapidly increasing and non-stop fertilizer prices in 2021, restrictions or bans on fertilizer exports in many countries, as in our country, and the signing of the European Union Green Agreement by our country, the changes that need to be made in this direction have drawn attention to the fertilizer industry.

In our country, 7.1 million tons of fertilizer was used in 2020. Although we produce 50-55% of this fertilizer, we are a country that is 90% foreign-dependent in terms of raw material resources. For this reason, the increase in fertilizer prices has generally varied depending on the increase in the exchange rate until today.

However, from the beginning of 2021, prices started to increase with the increase in fertilizer raw materials such as phosphoric acid, sulfuric acid, nitric acid and ammonia. Reasons such as the increase in freight (ship shipping) transportation fees, the lack of containers and ships, the high needs of India and Latin America, and the deterioration of the supply-demand balance were added to the increase in prices.

Fertilizer storage area

While increasing prices were expected to remain stable, many large producers either restricted or stopped production due to the increase in natural gas prices. Therefore, problems began to occur in the production and supply of ammonia.

China's ban on the export of phosphate products and the similar decisions made by many countries cause prices to remain very high. There was an increase of 90-200% in fertilizer prices, although it varied from product to product of foreign origin. When the exchange rate increase and high interest rates in our country are added to all these, we naturally encounter the FARMERS' RIGHT REVOLT .

If the prices of fertilizers are too high, the situation of not using fertilizers can cause more serious situations. Unfortunately, we experience yield and quality problems when sufficient and correct fertilizer is not used. This situation is reflected in the kitchen with the problems it will create in the food supply and demand balance.

Everyone should take responsibility for the reduction of fertilizer prices. Everyone who produces, imports, buys and sells fertilizers has to make sacrifices. Of course, the biggest expectation for support is our state. Our farmers should be subsidized in the face of increasing prices, industrialists should be supported in the supply and financing of fertilizer raw materials, and production should be increased in our country.

In our country, it was decided to record the export of fertilizers. Sulfuric acid and ammonia are added to the registration process for DAP , 15.15.15 , 20.20.0 , Calcium Ammonium Nitrate , Urea , Ammonium Sulphate and Ammonium Nitrate and export registration of all GTIP numbers to which these products are bound is given only to IMMIB and export is restricted or not done. appeared.

Related Products

Undoubtedly, the primary duty of all of us is to protect the Turkish Farmer and to serve the country's agriculture.

Everyone is trying to do their part due to the crisis and comply with the measures taken. While the representatives of the fertilizer sector approached the issue in this way, they reacted to the restriction on the export of special products and organic fertilizers.

Continuing the registration of fertilizer exports in our initiatives as Güid , allowing the export of raw materials such as DAP, AN, AS, CAN, Urea, 15.15.15, 20.20.0 and raw materials such as ammonia and sulfuric acid in excess of the need, except for organic, chemical, water-soluble, liquid Our request that there be no restriction on the export of solid special fertilizers was accepted by the Ministry of Commerce, and the restriction in the section on special fertilizers was lifted. Restrictions continue on other products.

In our country, there are about 1200 companies that produce and import special fertilizers that have obtained fertilizer licenses. More than 300 of these companies export to nearly 60 countries. We compete with countries such as Germany, Spain, Italy and the Netherlands in the countries we export to. The disappearance of exports in the special fertilizer market, the use of which is increasing day by day in the world, will not adversely affect the fertilizer prices in our country, but it will make a great contribution to small and medium-sized companies and the country's economy.

Fertilizer

In our country, very serious investments have been made in the production of special fertilizers in recent years, and the concept of fertilizer under the stairs is now disappearing. Due to increasing competition and farmer satisfaction being the primary target, every company has to produce or import good products.

Action plans should be prepared within the framework of the EU Green Agreement, which should be handled more comprehensively, and more support should be given to private fertilizer companies regarding what needs to be done in the fertilizer sector.

As Mustafa Kemal said, "Agriculture is the Foundation of the National Economy."

We have to increase the number of HAPPY FARMERS for the foundation to be solid. In addition, our agricultural resources should be protected, the expression of sustainable agriculture should not remain in words. Everyone should be made aware of the effective use of water and land.

Sources

Metin GÜNEŞ