EU fertiliser industry hit by low-cost Russian fertilisers

The trend had sparked debate in Europe over the introduction of restrictions on Russian fertiliser which, if introduced, could increase food inflation in the EU, the 27 November report said.

However, without restrictions, there was a risk that fertiliser imports could be weaponised by Russia, World Grain wrote.

In July, EU imports of Russian fertiliser reached their highest level in 20 months, pushing Russia’s share of European purchases above 30% for the first time since the start of the war with Ukraine in February 2022, according to Eurostat data.

Russia’s fertiliser exports to the EU increased by 120% in July compared to the previous month and by 70% compared to July 2023, totalling €199M (US$210M).

Poland became Europe’s largest sales market for Russian fertilisers, doubling its purchases to €55.7M (US$58.8M), while France saw a five-fold rise in imports to €31.5M (US$33.2M), and Germany expanded imports by a third to €24.5M (US$25.9M).

In July, Russia was the leading supplier of fertiliser to Europe with a 31% share, followed by Morocco with €111M (US$117M) and Egypt with €85M (US$90M).

The surge in Russian fertiliser sales has triggered a crisis in the European fertilisers industry, which a few years ago had seen some leading manufacturers making plans to expand, according to the report.

“Benefiting from very low, state-regulated gas prices, Russian fertiliser producers have adopted an aggressive price-undercutting strategy resulting in pushing domestic fertiliser producers out of business,” Łukasz Pasterski, a spokesperson for Brussels-based lobby group Fertilizers Europe, was quoted as saying.

“Around 20% of the EU’s production capacity is temporarily offline. The longer the situation lasts, the greater the risk of temporary closures becoming permanent.”

Fertilizers Europe has called on the EU and member states officials to take measures to reverse this growing negative trend, the report said.