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Russian market

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 16 regional branches and 26 agricultural chemicals storage facilities with storage capacities of about 550,000 tonnes of finished products. Overall, PhosAgro-Region operates in 67 regions of Russia, from Kaliningrad to Petropavlovsk-Kamchatsky. 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. 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

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