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Kernel for the first time starts buying nitrogen fertilizers in Poland
KYIV. Jan 18 (Interfax-Ukraine) – Kernel, one of the largest Ukrainian agro-industrial groups, has begun direct purchases of Anvistar nitrogen fertilizer from the Polish manufacturer Anwil S.A. of PKN Orlen group as part of early preparations for the upcoming agricultural season.
As the holding reported on Facebook on Wednesday, the fertilizers were delivered by road and transshipped into wagons at the border of Poland and Ukraine, the cargo is already on its way by rail to the warehouses of Kernel.
"We are purposefully expanding our network of partners, diversifying risks and testing a new quality of products for agribusiness. I am sure that this was only the first step towards a future partnership," Ihor Stelmaschuk, head of its Agribusiness commercial division, is quoted by the holding.
As reported, Ukraine’s largest fertilizer producer Ostchem of the nitrogen holding Group DF belonged to Dmytro Firtash in 2022 reduced production by 66.9% by 2021, to 1.754 million tonnes.
Among the main reasons for the reduction in Group DF production was the loss of control over Severodonetsk Azot (Donetsk region), which until February 27, 2022 managed to produce 0.05 million tonnes of nitrogen fertilizers.
In addition, the reduction in production caused the destruction of supply and distribution chains, a decrease in export volumes due to regulatory and logistical restrictions, power outages due to massive destruction of energy infrastructure facilities, high gas prices, as well as a drop in effective demand from farmers by at least 40%.
According to Group DF estimates, the fertilizer market in 2022 fell by 45-50% – from 4.75 million tonnes to 2-2.9 million tonnes.
PKN Orlen holds a dominant share in the oil product markets of Poland, the Czech Republic and the Baltic States.
Before the war, Kernel ranked first in the world in the production of sunflower oil (about 7% of world production) and its export (about 12%), and was also the largest producer and seller of bottled sunflower oil in Ukraine. In addition, the company was engaged in the cultivation of other agricultural products and their sale.
