PhosAgro-Region Increases Domestic Sales of Fertilizers by 50% to 1.2 Million Tonnes
MOSCOW: Russia's largest mineral fertilizer distribution network PhosAgro-Region (a PhosAgro subsidiary) has increased its total sales of mineral fertilizers to Russian farmers by 47% year-on-year in Q1 2020, reaching 1.2 million tonnes. Sales of PhosAgro's own fertilizers to the domestic market increased by 50% year-on-year to 916.7 thousand tonnes, while the network's sales of third-party products from other Russian manufacturers increased by 36% year-on-year. PhosAgro CEO Andrey Guryev said, "the domestic market will always be our strategic priority and the largest individual market in terms of sales volumes for our products. "In order to ensure that farmers have a reliable supply of mineral fertilizers amid the coronavirus pandemic, we have put in place a system of measures to prevent the spread of disease at our enterprises, in the cities where we operate and at regional distribution centres, where contactless shipment practices are in place. "In the first quarter, the Russian market showed record growth: according to the Russian Fertilizer Producers Association, mineral fertilizer sales to the country's farmers rose by nearly 40% year-on-year. The dramatic increase in purchases for spring field work, which began earlier than usual this year and is progressing in a much more dynamic manner, can be attributed to last year's rapid growth in agricultural production and impressive output in terms of crop production, which were the result of sound government policies in the agricultural sector and support from fertilizer producers. "This year, our customers want to get the most out of a favourable price situation in the market. While the first quarter mainly used to be the season for nitrogen fertilizers, many PhosAgro-Region customers have purchased phosphate-based and NPK fertilizers this year for both spring and autumn sowing. In light of this, we increased our supply of a wide range of phosphate-based grades to the domestic market by 50%, including liquid complex fertilizers, sales of which have doubled." PhosAgro has continued to develop electronic communications with customers, which has become especially important during the ongoing epidemic: the Company's online trading platform was put into commercial operation, and the first contracts with small and medium-sized agricultural enterprises were concluded in various regions. In addition, the volume of electronic trading in mineral fertilizers at SPIMEX has increased: the most popular brands of PhosAgro's phosphate-based and NPK fertilizers accounted for more than 60% of all trading in the first quarter of 2020.