Ukraine’s fertilizer production has decreased by almost 70%.

Chemical enterprises of one of the country’s largest holdings, Ostchem, reduced fertilizer production to a third of previous levels in 2022 – from 5.3 million tons to 1.75 million tons, announced Group DF. The reasons are Ukraine’s loss of control over Severodonetsk Azot, the destruction of logistics and sales chains, a decrease in export volumes due to regulatory and logistics restrictions, power outages, high gas prices, and a drop in demand from farmers by at least 40%. Cherkasy Azot produced the most fertilizers last year, 1.12 million tons, Rivneazot had 0.59 million tons, and Severodonetsk Azot produced 0.05 million tons of fertilizers before the war. However, fertilizer demand in Ukraine began to recover in September-November, so Group DF predicts market growth of 15-20% per year.