According to preliminary estimates, it will be necessary to increase agricultural production by 60% in order to feed the growing population. Demand for agricultural products will also depend on changes in diet, alternative uses of crops (e.g. bioethanol production), as well as the fact that farmers will strive to increase their crop yield because of limited land suitable for cultivation.
The company has a quality resource base for the next 50 years according to JORC (2018). PhosAgro is developing its own deposits of unique apatite-nepheline ore of igneous origin on the Kola Peninsula; there are few of such deposits on the planet. Unlike the raw materials of other producers, the local ore contains practically no harmful impurities.
We currently produce 39 grades of fertilizers and plan to expand the product line to 50 grades by 2025. Our flexible and efficient production models allow us to quickly adjust our product basket to market conditions. Thus, PhosAgro is always sure that all the fertilizers produced will be sold at the most attractive prices.
We plan to increase sales to 11.7 million tons of fertilizer by 2025. Our flexible business model of production and sales allows us to meet demand around the world as quickly as possible. Using its own flexible production and well-developed sales strategy, PhosAgro is able to mitigate the seasonality of demand and choose markets with the most attractive prices for our products.
We welcome the growing global attention to issues of food safety, human health and the prosperity of future generations. We believe that cooperation, exchange of knowledge and experience at the international level will help us to meet the needs of consumers in Russia and abroad and offer them the best products and services. It will also contribute to the successful solution of environmental and food issues at the international level.
Our operation is based on a vertically oriented model covering all business segments – from raw material production to logistics and distribution of the finished product. PhosAgro provides itself with phosphate rock 100%, sulfuric acid – 87% and ammonia – 90%. This allows us to control the costs at each stage and ensure the competitiveness of our fertilizers on the market. In addition, PhosAgro is constantly improving the efficiency of raw material processing and fertilizer production. All above mentioned positions us in the left side of industry’s cash cost curve and secures leading EBITDA margin on the backdrop of any market headwinds.
PhosAgro's credit rating has been classified investment-grade by the leading global rating agencies. The Group has the lowest level of borrowed funds among peer international and domestic companies and one of the highest gross profit margins among producers of phosphorus-containing products.