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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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In comparison with the corresponding period in the previous financial year, the dynamics of growth of “PUŁAWY” Company has remained impressive. In many respects the growth (in terms of output volume) proved remarkable.
The above is true of both agricultural and chemical segments. Not only the Parent Company, i.e. “PUŁAWY”, is responsible for this success. Recognition is due to Gdańskie Zakłady Nawozów Fosforowych “Fosfory” and “Azoty – Adipol” from Chorzów as well. From the 1st July to 31st December 2012, as compared to the first half of 2011/12 financial year, the Group produced 112,4% as much ammonia, 116,% – nitric fertilizers, 111,5% – AdBlue®, 95,8% – CAPROLACTAM™, 108,1% – Melamina™ and 102,7% – hydrogen peroxide.
In the second half of 2012 “Fosfory” produced 102% as much phosphatic fertilizers and 114,8% multi-compound fertilizers. In “Azoty – Adipol” the output of potassium nitrate was 132% of previous period’s result, but the growth of calcium nitrate production to 585,8% of previous year result was the most noteworthy success. This achievement was connected with increased market capacity and good pricing.
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Potassium nitrate-urea solution (RSM) is one of the most popular fertilizers manufactured by “PUŁAWY”. The main reason for its success is our strategy of offering good quality product at a competitive price.
How is that possible?
Combining both competitive advantages is possible thanks to high output capacity of “PUŁAWY” when it comes to the ingredients of RSM. Annual output of urea and potassium nitrate reaches 1.1 million tonnes per year. Consequently, the average price per ton is low, without compromising on the content of clear nitrogen in the product (levels of concentration available are 28%, 30% and 32%).
How does RSM work?
A combination of two forms of nitrogen: the quick-acting amide nitrogen and the slowly-activated ammonia nitrogen makes the fertilizer the most effective one in our climatic zone. Moreover, the solution may be easily applied and is quickly absorbed due to its liquid form. It does not require dissolving, as in the case of fertilizers in the form of granules.
RSM is a priority for “PUŁAWY”
Owing to the impressive production capacity of this fertilizer (3rd rank in Europe – 1.2 million tonnes per year), “PUŁAWY” are constantly conducting R&D projects to develop the product. Once the latest investments are finalized, the plant will be able to enrich liquid solution with sulfur of magnesium.
Quality, price and availability stemming from modern logistical solutions are not the only reasons for the growing demand for the product. Another factor is the spread of know-how done at training sessions for farmers run by “PUŁAWY” staff. We are active in training and educational projects by Fertilizer Research Institute and the Institute of Soil Science and Plant Cultivation.