Ukraine saw a fall in fertilizer production of nearly 70% in 2022, according to a Ukraine Business News report.
The country’s production of fertilizer decreased from 5.4 million mt in 2021 to 1.75 million mt last year. The report cited the impact of Russia’s full-scale invasion of the country, which saw Ukraine lose control of the Severodonetsk Azot plant, the country’s third-largest ammonia producer.
In addition, the fertilizer sector was hit by power shortages, high gas prices, and a reduction in export volumes.
According to the report, demand for fertilizers from Ukraine’s farmers also fell some 40% last year, amid loss of arable land due to destruction and occupation. Russian forces currently occupy over 20% of Ukraine’s arable land, while around 160,000 km2 has been mined, equating to roughly 26.5% of the country, according to the report, citing Ukraine government estimates
Of the chemical enterprises making up Ostchem, the Ukrainian holding company owned by Group DF, Cherkasy Azot produced 1.12 million mt last year, and Rivneazot produced 0.59 million mt, while Severodonetsk Azot only produced 0.05 million mt, according to the report.
However, Group DF sees market growth of some 15%-20% per year, as the demand for fertilizers in Ukraine began to increase in September-November as territories in the east and south were liberated from Russian control.