The price of fertilizers has increased 4-5 times in Moldova, opened with the winter of 2021
Prices of phosphate-based feedstocks, particularly sulfur and ammonia, have risen sharply in 2021 as reduced refinery activity due to COVID-19 restrictions has limited supplies.
Urea feedstock production costs rose significantly as a result of rising natural gas prices from early 2021 through April 2022, reaching record levels. Although they subsequently decreased, they remained at very high levels.
4-5 times more expensive
The data presented by the authors in the study show a 4-5 times increase in fertilizer prices.
“This is due to rising input costs, supply disruptions caused by sanctions on the Russian Federation and Belarus amid the war in Ukraine, and the suspension of exports from (mainland) China until June 2022. All three are key fertilizer exporting countries,” the authors explain.
Due to high international prices and trade blockages, fertilizer import volumes fell sharply in the first half of 2022 compared to previous years.
In particular, with the outbreak of the war in Ukraine, the imports of fertilizers from the Russian Federation, which previously took place mainly by rail, were redirected to Romania via the Black Sea (from the port of Constanta to Galati and then by truck to Giurgiuliesti) , or through the Giurgiulesti river port on the Danube. Increased logistics difficulties have delayed delivery times and payments, greatly increasing import costs.
Shipping times doubled with the shift from rail to sea and river ports: from about two weeks to over a month.
Limited local availability and high prices have resulted in low or delayed fertilizer use in some areas, adversely affecting 2022 crop yields.
In addition, farmers interviewed by the mission stated their intention to further reduce fertilizer use next season due to high prices and climate risks.