A revolution on the fertilizer market

| Prospects & Investment |

Fertilizer-chemical industry keeps an eye on changes in global agriculture. In particular, the Polish chemical companies analyze the situation of farms in Poland and other EU countries.

Polish agriculture vs the EU

The Polish agricultural market is relatively small if we consider its contribution to the national Gross Domestic Product. According to specialists, agricultural production accounts for c. 3% of GDP. In even more economically developed European countries the value is closer to 2%. And still, farming is an important and meaningful element of the EU economic market, with the fertilizer-chemical industry one of decisive factors in its growth.

In recent years we have observed increased awareness of chemical companies’ representatives, who have recognized the key role of European regulatory bodies is shaping the market rules. “PUŁAWY” participates actively in the proceedings of various international organizations, such as Fertilizers Europe. This associations is highly influential when is comes to decision-making processes in Brussels. Participation in organizations allows the fertilizer-chemical industry representatives to oversee the preparation of decisions concerning the energy & climate bill.

Changes in agriculture – changes in chemistry

Cooperation of chemical-fertilizer companies makes it possible to look at changes on distribution market. This market, which was quite underdeveloped in Poland in the previous decade, is now undergoing intensive professionalization process. The changes concern not only farming representatives, but also agricultural advisers and farmers themselves.

Reduction of greenhouse gases emissions

Let us consider an up-to-date issue of European emissions trade system. The share of complex fertilizers manufacturing in total greenhouse gases emissions is 1.2%, while farming itself contributes as much as 13.5% of those emissions. Consequently, the best farming practices about which we have been educating farmers have a decisive impact on the development of agriculture in coming years. The current expectation is to reduce greenhouse gases emissions by 50% by 2050! Is it possible? Our company is seriously interested, and we are examining the carbon footprint of our fertilizers. Norwegian fertilizer manufacturer Yara International has boasted about carbon footprint as low as 3.6 mg. Thanks to implementation of modern manufacturing methods, “PUŁAWY” is intending to reach similarly low level in its fertilizer production technology.

Boosting manufacturing efficiency

If we measure the quantity of gas used to manufacture a ton of ammonia, the efficiency of our installations is 830, while in Russia it is 1200, and in Europe on average 1000-1100. This is the best proof of the effort we put in improving the efficiency of our installations for the benefit of the Company as well as the natural environment. The greenery and animal population in the vicinity of the Works is the most credible reviewer of our activities. If a peregrine falcon settled and clutched on our premises, it must have liked the habitat, which confirms good results of our efforts.

Based on a talk by Zenon Pokojski Ph.D. at IFMA 19 Congress in Warsaw – July 26th 2013.