Compile booklet
 
Share link
 

Russian market

The Russian market is a priority for PhosAgro

  • The Russian market holds significant potential, and PhosAgro views it as one of the best opportunities globally in terms of agricultural sector growth option. Russian agricultural enterprises have become more competitive thanks to the depreciation of the rouble and state support for the sector, as well as significant investments into modernising agricultural production. In 2017, domestic sales increased by 12.3% year-on-year to 2.34 mln tonnes, while the Company’s market share in Russia reached 29%. Since 2011, our home market has accounted for 30% of our total revenue. Significant investments into the development of our sales network have allowed the Company to become the largest supplier of fertilizers in the Russian agricultural sector. 

  • Domestic sales Sales volumes in our domestic market  increased 12,3% year-on-year in 2017, to 2.34 million tonnes.


The Company holds strong positions on the domestic market

  • The Company is not dependent on supplies of imported raw materials. Russian suppliers meet PhosAgro’s requirements for sulphur (raw material for the production of sulphuric acid used to manufacture phosphate-based products), potassium, natural gas, electricity and other types of raw materials. Prices for certain types of products are state-regulated, curbing growth in production costs.
  • PhosAgro operates its own sales network and owns a subsidiary freight-forwarding company. PhosAgro has representative offices in all of the country’s key agrarian districts. PhosAgro-Region, a subsidiary of the holding company, owns and manages 15 regional branches and 24 agricultural chemicals storage facilities with storage capacities of about 470,000 tonnes of finished products. Overall, PhosAgro-Region operates in 67 regions of Russia, from Kaliningrad to Petropavlovsk-Kamchatsky. In addition, the company leases 180,000 tonnes of additional storage capacities. The company’s distribution network makes it possible to establish close relations with customers and actively promote the PhosAgro brand. PhosAgro’s primary assets are located close to its customers, while products are delivered by subsidiary freight-forwarding company PhosAgro-Trans. PhosAgro thus has full control of its product distribution costs in Russia.

Russia’s domestic market has growth potential

  • According to the Integer, at present annual consumption of mineral fertilisers in Russia amounts to only 40kg per hectare of arable land. By way of comparison: in European countries this figure reaches 149kg, and in the USA – 131kg.
  • Similar growth rates in demand for phosphates and phosphate-based fertilisers can be expected in the future on the Russian domestic market. 

USE OF FERTILISERS, KG NUTRIENTS/HA
EU149
Brazil182
USA131
Russia40
Source: Rosstat, FAO

Information on cookies

This website is using cookies and other web-technologies to help provide you with the best browsing experience that would suit your preferences. Cookies also help us gather statistics that show how the website is being used and how it can be improved in terms of content and structure.
By continuing to browse www.phosagro.com,

you are agreeing to our use of cookies in accordance with the terms of the «Cookie Policy», including the transfer of information to third parties mentioned in the “Cookie Policy” (online statistical services).