Why did Ukraine’s largest mineral fertilizer producers reduce production last year?

In 2024, the average annual capacity utilization of companies belonging to OSTCHEM, which unites Ukraine’s largest mineral fertilizer producers, did not exceed 70%. The holding plants produced 1.8 million tons of mineral fertilizers last year (-13% compared to 2023). Cherkasy Azot maintained its production level at 1.4 million tons, while Rivneazot reduced its volumes by 22%, producing 407,000 tons.

The reasons for the production declines are low grain prices on global markets, power outages due to Russian attacks, war, and uncontrolled imports of cheap, low-quality fertilizers. Ukrainian farmers are going through difficult times, and their operating margins have been significantly diminished. This affects domestic demand for mineral fertilizers. According to OSTCHEM, the decline in the chemical industry was about 10%.

The key challenges for the industry in 2025 are to ensure production sustainability with the current unstable energy supply, reduce production risks, and displace imports through better quality. OSTCHEM plans to continue to invest in producing the fertilizers most in demand and expanding its product line.