After the bankruptcy of Azotara Pancevo, only one company in Serbia produces mineral fertilizer, according to the report of the Commission for Protection of Competition. The Commission points out that there is a noticeable increase in the prices of artificial fertilizers on the domestic market, as well as imports. It is mostly imported from Russia, although the price per ton is far more expensive compared to other countries from which Serbia mostly imports fertilizer.
Serbia increased the import of mineral fertilizers in the previous year by as much as 62 percent. Most fertilizers are imported from Russia, about 60 percent, and then from Croatia, Austria, Hungary and Romania, but in far smaller quantities. Over the past three years, imports from these five countries accounted for 92% of total mineral fertilizer imports.
The average import price increased over three years from 238 to 268 euros per ton, an increase of 13 percent. The average price of fertilizers imported from Russia increased by 20% in the observed period. Fertilizer imported from this country has, therefore, become the most expensive on the domestic market compared to other countries from which it is mostly imported, according to a new report by the Commission for Protection of Competition.
Ukraine has become the second largest export market, after Hungary.
The total export of artificial fertilizers had a growing trend in the three-year period, so that in 2019, the export quantities increased by 29% and the export value by 51% compared to 2017. The average export price increased over three years from 257 to 299 euros per tonne, an increase of 16%.
Mineral fertilizers are mostly exported to Hungary, and Romania, Croatia, Bulgaria and Bosnia and Herzegovina stand out from other countries in the region. In 2019, significant quantities of fertilizers were exported to Ukraine, so that this country became the second largest destination for fertilizers originating from Serbia, the Commission points out in the report. In the observed three-year period, exports to these six countries accounted for about 80% of total exports of mineral fertilizers.
Only one producer and one dominant importer
Based on the data available to the Commission, the total market of artificial fertilizers in our country in 2019 is estimated at about 806 thousand tons. From the middle of 2018, only one company in Serbia produces mineral fertilizer – Elixir Group. This company was also the leading importer of fertilizers in 2017 and 2018, but it was replaced in that position in 2019 by the company “Promist”.
The sector analysis included eight market participants, producers and importers, which together make up about 90% of the total fertilizer market in 2019. According to the assessment of the Commission for Protection of Competition, the largest turnover last year was realized by Elixir Group, Promist and Phosagro.
The Commission explains that this analysis was done due to the noticeable increase in the prices of fertilizers on the domestic market last year. Another important reason is the significant changes that have occurred in this sector in the past period, which could have affected competition in the market.
This primarily refers to the initiation of bankruptcy proceedings and bankruptcy of one of the largest producers of artificial fertilizers and nitrogen compounds in Serbia – the company HIP Azotara Pancevo, BiF reports.
