“Over the next several dozen hours, after completing the necessary analyses, Grupa Azoty will return to accepting orders for nitrogen fertilizers and standard cooperation under current market conditions. In this decision, we must take into account both the interests of agricultural entrepreneurs and our business partners, as well as the interests of the Company itself,” we read in the Grupa Azoty entry.
“The actions we take they are a well-thought-out business response to an extraordinary market situation. Their goal is to maintain supply stability and actively protect the market and Polish farmers against excessive fluctuations in fertilizer prices” — we read.
“At the same time, we emphasize that fertilizer production is carried out on an ongoing basis using maximum production capacity. The amount of available fertilizers and stocks in the warehouses of the authorized distributor network are sufficient to meet both the current and future needs of agricultural entrepreneurs. emphasizes the company.
“Threat to agricultural activities”. The Ministry of Agriculture is sounding the alarm
The Ministry of Agriculture and Rural Development responded quickly to Grupa Azoty's decision to stop accepting orders for nitrogen fertilizers. In a published statement, the ministry warned that it may constitute a “threat to agricultural activities”. It also asked the Minister of State Assets, Wojciech Balczun, for a quick reaction.
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“Due to the announcement by Grupa Azoty about the temporary suspension of accepting new orders for nitrogen fertilizers from March, Minister of Agriculture and Rural Development Stefan Krajewski asked the Minister of State Assets, Wojciech Balczun, asking for clarification on this matter and taking action to restore the current state of supply of fertilizers to the market, while not increasing their prices.“, the Ministry of Agriculture announced in a statement.
“At the same time, the Ministry of Agriculture and Rural Development expressed its concerns in this regard and presented comprehensive arguments and hope that The situation will be resolved by Grupa Azoty SA very urgently and to the benefit of farmers” – wrote in the statement of the Ministry of Agriculture and Rural Development.
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The resort noted that Due to the dynamic and changing situation and the threats posed by a possible problem with the availability of fertilizers for farmers, the Ministry of Agriculture – based on reports – conducts daily monitoring of the fertilizer market in terms of their availability and price changes in individual voivodeships. It was added that if threats are identified, further actions will be taken.
The rising price of gas forces changes. Azoty Group's decision
Grupa Azoty announced on Monday that temporarily suspends accepting new March orders for nitrogen fertilizers due to the unstable geopolitical situation in the Middle East and a sharp increase in gas priceswhich is the basic raw material for the production of nitrogen fertilizers. The company added that On March 2, the price of gas increased by 35-50 percent, and subsequent increases reached approximately 30 percent the next day.
The president of Grupa Azoty, Marcin Celejewski, explained to journalists on Wednesday that the company had to respond to a very dynamic increase in gas prices related to the outbreak of the conflict in the Middle East.
— We wanted to endure this period of panic to see if the situation would stabilize so as not to impose unnecessary unnecessary costs on our products by increasing prices, he explained.
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Grupa Azoty is one of the key capital groups in the fertilizer and chemical industry in Europe. It ranks second in the European Union in the production of nitrogen and multi-component fertilizers, and also operates on the markets of products such as melamine, polyamide, OXO alcohols, plasticizers and titanium white.. Grupa Azoty is a joint-stock company in which the State Treasury is the largest shareholder – it holds 33%. shares.
