Climate change poses a threat to wheat

| Foreign Markets |

Climate changes are having a more and more visible impact on agriculture and food manufacturing in the world. Experts on the topic have some alarming news: wheat yields are going to fall by 6% each time the temperature on the planet increases by one degree Celsius. On the international scale, this means as many as 42 million tonnes of wheat fewer each year.

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Low prices of Polish cereals

| Polish Market |

The end of the year provides an opportunity to sum up the situation on the market of agricultural products. 2014 brought bumper harvest in agriculture. This is not good news for the market, though, as increased supply pushed the prices of cereals down to such an extent that their purchasing price does not cover the production cost.

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Poor harvest – mistakes which can be avoided

| Polish Market |

Poor weather is not the only cause of low yield. Agricultural manufacturers are also responsible for the quantity of harvested foodstuffs. Fortunately, there are foolproof ways to eliminate mistakes leading to disappointing yield. Here are the mistakes connected with cereal sowing and cultivation, which may be eliminated:

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Challenges for Europe and Central Asia

| Foreign Markets |

A regional conference organized by FAO was held in Bucharest in the first week of April. One of the main conclusions following the experts’ meeting is as follows: it is not hunger, but malnutrition resulting from micronutrient deficiency and low calorie value of meals that is the most important problem for Europe and Central Asia.

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RSM – the solution comes from “PUŁAWY”

| Production & Resources |

Urea-ammonium nitrate solution (RSM) is one of the most universal products in Agro segment of Grupa Azoty “PUŁAWY” market offer. RSM may be applied on all soils, and to fertilize cereals, canola, potatoes, maize, fruit and vegetables.

Three in one

RSM contains amide, ammonium and nitrate form of nitrogen – as many as three. Consequently, the fertilizer is active over a prolonged period of time and may provide nutrients for plants in the long term. The product is a solution with high levels of concentration: 28% N, 30% N and 32% N. Apart from different nitrogen content, the three solutions also have various temperature of crystallization and density.

RSM - the solution comes from Liquids act faster

Thanks to the form of aqueous solution, the nitrogen is absorbed by plants faster, while application via flooding or spraying ensures even distribution of RSM. The product may be used before sowing or during the cultivation of the crops. It is also excellent at the time of drought, bringing high efficiency of fertilization.

We also offer RSMS

Only 4% of Polish farmland has soil rich in sulphur, which is vital for the growth of many plans. The element also facilitates effective absorption and use of nitrogen provided in fertilizers. In order to supplement sulphur, “PUŁAWY” offers RSMS, the urea-ammonium nitrate solution with added sulphur in the easily absorbed, sulphate form.

RSM - the solution comes from Quality counts

Both RSM and RSMS are high quality products, produced in accordance with the 1st Regulation on Fertlizers (EC) no 2003/2003 of the European Parliament and Council from 13.09.2003. RSM also has the Compliance Certificate (Nawóz WE/EC Fertilizer) and “Q” quality tag.

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Perspectives for domestic cereals market

| Polish Market |

Falling prices of cereals in Poland result from bumper harvest in the country and in the world. However, the forecast shows that this year the crops will be lower that the year before.

How much will be picked?

This year’s volume of basic grains (including barley, wheat, rye, triticale and cereal mixes) is estimated to reach 24.1 million tonnes. The growth concerns wheat (by 9%), rye (by 14%) and triticale (by 27%). However, less barley (by 30%) and cereal mixes (by 22%) will be collected. Maize crops will reach 3.9 million tonnes, 2.3% less than last year.

The size of domestic consumption

Experts forecast that market demand shall reach 26.8 million tonnes. Low consumption and smaller demand will push prices down, resulting in using cereals for industrial purposes, e. g. the production of biofuel. Expected growing scale of poultry production is not sufficient to offset the fall in the production of pork. In the end, less cereals will be needed as fodder. Estimates say that this market will reach 16 million tonnes, or 2% less than in the previous year.

Foreign trade

The most Polish cereals are currently exported to Spain, Ireland, Germany, North African countries and Saudi Arabia. At the beginning of this season (in July and August 2013) 23% more cereals were exported than in the same period of 2012/2013 season. Similar trends were observed in the case of primary processing (growth by 31%) and highly processed cereals products (growth by 8%). However, experts believe that the quantity of grain supply and cereal products will decrease due to diminishing stock in the country and good harvest in the leading European cereal producing states. Therefore, the forecast export might reach 2.9 million tonnes (compared to 4.5 million in 2012/2013), while import of cereal products, resulting from expected market shortages, may reach 1.7 million tonnes.

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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.

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