Acron Group, Moscow, is freezing the prices Russian growers pay for its fertilizers until the end of the autumn sowing season, effectively Oct. 31.
“Following a slump in 2019 and 2020, the fertilizer market is now seeing prices recover. Acron Group sees Russia as a priority market, which is why we have decided to support the country’s agro-industrial complex during the active phase of autumn sowing by freezing the prices of all our fertilizers at the current level,” said Acron Group Chairman Alexander Popov.
“Today, Russian growers pay 30-40 percent less for fertilizers than the prices commanded in the global market,” he said. “After the costs of logistics, transshipment, and other services are added in, agricultural producers in other countries pay almost double what Russian growers pay in the domestic market.”
Between October 2020 and May 2021, ahead of the 2021 Spring sowing season, Acron said it supplied Russian growers with over 930,000 mt of fertilizers, up 27 percent year-on-year. In full year 2020, the group shipped 1.4 million mt of fertilizers to domestic growers, up 93 percent year-on-year.
Each year, the group signs fertilizer supply agreements with regional agricultural departments in the country. For 2021, it inked agreements with 12 Russian regions.
EuroChem last week also announced it was freezing the selling prices for the main types of fertilizers it sells to domestic growers until the end of the autumn field work. Uralchem and Uralkali said in June they would freeze their product prices for Russian growers.
The two companies supplied more than 1.1 million mt of various fertilizer products and potash to the Russian market in total in the first five months of 2021, almost 10 percent more than the same period a year earlier, according to Uralchem.