Situation on Polish fertilizers market

| Polish Market |

The harvest which started in July 2013 was very smooth thanks to favorable weather conditions. At the same time, the time was a “dead season” for fertilizer application. Warehouses and outlets commenced preparation for autumn season of fertilizing farmland. Low purchase prices of canola and cereals in August did not improve the outlook for the producers of farm supply goods, including the manufacturers of fertilizers.

Changes on the market of nitrogen based fertilizers

Prices on the domestic market of nitrogen fertilizers fell in Q3 2013. The downward trend in retail pricing of this product continued till September 2013, when the drop exceeded 10%. Prices of nitrogen based fertilizers were much lower in July-September 2013 than in the same period of 2012.

Market expected to rebound

By the end of 2013, retail prices of fertilizers are to rise slightly, seeing that the prices of cereals are on the increase. Many farmers decided not to sell cereal and canola immediately after the harvest, due to low purchase prices. However, since September 2013 prices of cereals have been rising, which is likely to encourage farmers to open up domestic granaries. Fuller pockets of particular farmers ought to bring about increased demand for fertilizers.

Articles prepares by Strategy and Development Team of Grupa Azoty “PUŁAWY”, headed by Andrzej Górecki.