Increased competition between fertilizer producers will be reflected in the market - Andrii Halyavka

29/03/2024 11:50

Domestic production of fertilizers will grow at the expense of small manufacturing companies. In this direction, the market is already moving forward by leaps and bounds.

The owner and general director of the GROSSDORF company Andriy Halyavka told about this in the interview "Andriy Halyavka: The movement of the Ukrainian fertilizer market towards imports is inevitable" on Latifundist.com.

As he explained, the production segment on the Ukrainian fertilizer market is currently oversaturated.

"Actually, one of our companies can provide KAS to the whole of Ukraine. Our KAS production capacity is 3.5 thousand tons per day. Taking into account the fact that the current capacity of the Ukrainian market does not exceed 800,000 tons, this is 230 days of continuous production," noted Andriy Halyavka.

At the same time, he added that in addition to production capacity, there are other factors that affect the final result.

"For us, for example, a critical factor is the logistics of raw materials. We simply do not have the technical ability to continuously supply raw materials for full production load for a long time, although this problem can also be solved," explained the company's director.

The limited amount of working capital also negatively affects the logistics of raw materials.

"But in general, the trend is unequivocal - the next year will probably be a serious test for fertilizer producers in Ukraine, and the competition for a "place under the sun" will be fierce. Most likely, we will see the signs of this struggle already this autumn, when a number of new productions will be launched and the preliminary procurement of KASU for autumn and partly spring sowing work will begin," explained Andrii Halyavka.

Domestic production of fertilizers will grow at the expense of small manufacturing companies. In this direction, the market is already moving forward by leaps and bounds.
The owner and general director of the GROSSDORF company Andriy Halyavka told about this in the interview "Andriy Halyavka: The movement of the Ukrainian fertilizer market towards imports is inevitable" on Latifundist.com.
As he explained, the production segment on the Ukrainian fertilizer market is currently oversaturated.
"Actually, one of our companies can provide KAS to the whole of Ukraine. Our KAS production capacity is 3.5 thousand tons per day. Taking into account the fact that the current capacity of the Ukrainian market does not exceed 800,000 tons, this is 230 days of continuous production," noted Andriy Halyavka.
At the same time, he added that in addition to production capacity, there are other factors that affect the final result.
"For us, for example, a critical factor is the logistics of raw materials. We simply do not have the technical ability to continuously supply raw materials for full production load for a long time, although this problem can also be solved," explained the company's director.
The limited amount of working capital also negatively affects the logistics of raw materials.
"But in general, the trend is unequivocal - the next year will probably be a serious test for fertilizer producers in Ukraine, and the competition for a "place under the sun" will be fierce. Most likely, we will see the signs of this struggle already this autumn, when a number of new productions will be launched and the preliminary procurement of KASU for autumn and partly spring sowing work will begin," explained Andrii Halyavka.
Back
Загружаем курсы валют от minfin.com.ua