Agriculture

PhosAgro-region believes that Russia in the period of 5-6 years will double the consumption of fertilizers

The Minister of agriculture of Russia A. N. Tkachev in his speech at the exhibition “Golden autumn” 2016 noted that Russia consumes far less fertilizer than in Europe, and of of the targets of Russian agriculture is to increase the volume of fertilizer consumption.

Cultural-political magazine “E Vesti” has asked to comment on the current situation with fertilizer Sergei Pronin, General Director of “PhosAgro-Region”.

“PhosAgro-Region” is the largest sales network of FosAgro group to supply fertilizers to the domestic market. It supplies 25% of Russian fertilizers. Shipments of PhosAgro fertilizers in the Russian market in 2015 exceeded 1.6 million tons; in January-September 2016 it is more than 1.7 million tons (+37% to 2015) in the nearest plans of the company is to extend shipments over 2 million tons.

E Vesti: Sergey, a narrow-minded point of view, we are convinced that our earth is sated fertilizers, and suddenly we hear that the Minister of Agriculture Alexander Tkachev said that Europe use much more fertilizers, and this is one reason why they have higher yields.

Sergey Pronin: For the first time I hear that our soil is saturated with fertilizer, it is far from saturation. Maybe a separate fields in Krasnodar or Belgorod are really saturated, but on a national scale it is, of course, wrong.

Indeed, Europe is making 3-4 times more fertilizer, and we should strive to do. Russia is at the end of Europe in fertilization, it is one of the last places.

Another thing is that a large harvest can also trouble the farmer, because it has nowhere to go. For example, let’s see the Altai region. The region is far, price of the crop upon arrival at the port would be uncompetitive. That is, the yield has its own nuances.

EV: Tell me, please, if we increase the fertilizer application to the European level, the products will be equally valuable for health? Will it affect adversely on him?

Sergey Pronin: No, this narrow-minded view that fertilizer is a kind of chemical that poisons the products. Fertilizer is a million controls, we continuously check for additives, impurities or something like that. Fertilizer has no effect on health.

EV: What is the reason, the fact that we consumed less fertilizer? The regulations and the reluctance of farmers to buy, or You do not have much?

Sergey Pronin: No, fertilizer validity is enough. Desire to buy them from the farmers, maybe ansennt because funds are not always enough.

EV: Is it expensive?

Sergey Pronin: I would not say that expensive, but in conditions of economic crisis we need not only fertilizer, but plant protection products, and fuel, and machinery. Probably farmers are short in money in complex.

My opinion is that we need state support. The market requires the electoral subsidy, because if you put something in the soil, then you will return it respectively, and it should be supported by the state. Support must be given to probably those farmers who sow technological literacy, including applying fertilizer. So, I think it needs a comprehensive approach.

EV: If we are talking about money, then Alexander Tkachev said that it would strive to ensure that farmers got loans at 5% per annum for subsidising Bank interest. How do You feel about this initiative? Will it help fertilizer market?

Sergey Pronin: A difficult question. I think it may help. I do not presume to answer immediately, but I think that should help.

EV: How do You estimate the overall climate in the agricultural market?

Sergey Pronin: Our market is growing. Russia more is to consume fertilizers, we look to the future with positive expectations.

Russia now consumes about 7 million tons of physical weight fertilizers and fertile good background consumption should be at least twice more. I think Russia will come to this level in the next 5-6 years.

EV: You have a new export opportunities?

Sergey Pronin: For us they were always the same. We export products to almost all continents, all countries of the world. Where is the state of our exports better, somewhere worse.