Fertilizer Use in the EU Could Be Reduced by 15%

In 2022, a reduction in the use of mineral fertilizers is expected. Despite the fact that many enterprises for the production of nitrogen fertilizers have resumed work, demand for them will decrease. This forecast was made by the representative of the EU division for the management of agri-food markets Fabien Santini.

The expert noted that despite the resumption of work by enterprises producing fertilizers, the price for them will still be high. Enterprises will provide sufficient supply in the market. However, fertilizer consumption will be reduced by 10-15% on average, depending on crop types.

The main reason for the instability in the fertilizer market was the price of gas, which increased 4 times. Because of this, the price of ready-made products has also risen rapidly. Thus, the cost of carbamide increased by 263%, and the price of diammonium phosphate increased by 92%. The total cost of fertilizers increased by 250%.

Santini also predicts an increase in purchases through forward contracts. This move will help reduce market volatility and make planning easier. This year, farmers will apply slightly less fertilizer than in the previous season. Sowing dates may also change and the proportion of crops that do not require a large amount of fertilizers may increase.