Despite progress in science and technology, there are areas in which old and proven methods cannot be dispensed with. One of them is agriculture. It is hardly possible to grow good cereals, vegetables and fruits without the use of fertilizers. The production of mineral fertilizers in Russia has long been put on stream, moreover, the country is one of the world leaders in the production of certain types of stimulants. Where exactly are the enterprises providing the country and its partners with fertilizers, and what types of fertilizers are most common in Russia?
General industry information
Let's start with the theory. The production of mineral fertilizers in Russia and in other countries of the world is divided into several types. Nitrogen fertilizers, the leader in the development of which is China, contribute to the formation of proteins in the plant, as well as accelerate growth and increase productivity. As for the phosphorus fertilizers, the first in the production of which goes to the USA, they allow you to create a strong root system, and also improve the process of photosynthesis. The third category, potash fertilizers, of which Canada is the main exporter, helps develop resistance to drought and disease.
On the world market, Russia occupies one of the leading places among manufacturers. This is because the raw materials for the production of mineral fertilizers in Russia are much more diverse than in many other countries, this is due to the vast territory of the country, where there are a variety of minerals. It is worth noting that after the merger of the two largest companies in Russia, namely Uralkali and Silvinit, a clear competitor to the Canadian leader in the production of complex mineral fertilizers appeared on the world market.
Industry in Russia
The main plants for the production of mineral fertilizers in Russia were built in Soviet times. But if then they focused solely on the needs of the Soviet Union, today their main task is to satisfy the global demand for fertilizers: Russia's share in the world market of various types of mineral fertilizers is currently 6%. In this regard, not only the raw material, but also the export factor began to play an important role in the location of fertilizer manufacturing enterprises - the poor location of the plant will entail additional transportation costs.
Nitrogen Fertilizers
The largest number of Russian enterprises in this area is in the nitrogen fertilizer sector. Large centers for the production of mineral fertilizers in Russia are represented by such industrial giants as Eurochem, Uralchem and Acron.
The main exported product in this area is ammonia and its derivative urea. A promising region is the Far East, where large reserves of raw materials - natural gas - are concentrated. Large centers for the production of mineral fertilizers in Russia are also supported by world-famous companies such as Gazprom, which launched the Sakhalin-Khabarovsk-Vladivostok gas pipeline, as well as a new fertilizer transfer channel to Asia, which will significantly reduce transportation costs.
Phosphoric Fertilizers
In the phosphate fertilizer segment, the centers for the production of mineral fertilizers in Russia are the cities of Balakov (with the Balakovo Mineral Fertilizers enterprise, which accounts for about 60% of the phosphorus fertilizers produced in the country) and Cherepovets (with the PhosAgro-Cherepovets holding).
In principle, the economic situation in this segment is more or less stable, although in recent years there has been a tendency to decrease production volumes. This is due to the fact that the previous main partner, India, began to set unjustifiably low prices, thus, such trade was impractical for Russia. The main task of enterprises today is modernization in order to expand the product range. Experts consider the countries of Africa and Latin America to be promising partners in the field of phosphorus fertilizers.
Potash fertilizer
The potash segment is the most volatile in the industry. At the beginning of the century, in connection with the economic crisis, there was a constant decline in demand, seriously affecting the production of mineral fertilizers in Russia and the break with the partner company Belaruskali. The main producer in this area, Uralkali, was able to correct the situation by lowering export prices.
The main partners of Russia in this industry are China and Brazil. It is also worth noting that Uralkali revised its investment policy: fewer funds will be invested in modernization, which will avoid overproduction and stagnation of goods in warehouses.
Location of the main enterprises
The main areas of mineral fertilizer production in Russia are concentrated in the European part of the country - this is due to the fact that the main raw material reserves are located in this region, while the East has not been sufficiently studied in this direction. The main production facilities shifted to the Urals, although previously the central region of Russia was evenly involved in the chemical industry. Now, in connection with the reorientation of the industry to the east, the former location of enterprises is not advisable.
It is worth noting that the location of manufacturing enterprises is mainly determined by their export factor, so there is a tendency to locate them either near direct consumers or near gas pipelines through which the same ammonia, which is the basis for the production of nitrogen fertilizers, can be transferred; the same tendency exists in the phosphate segment: the presence of consumers plays a major role here, which is why most of the plants are located in large agricultural areas.
The current state of the industry
The largest centers for the production of mineral fertilizers in Russia are enterprises such as Uralchem, Eurochem, Rossosh and Akron. They export complex fertilizers, that is, combine several types at the same time.
Summarizing the above, it is worth noting that Russia has unique raw material reserves - the scale of its territory allows producing any type of fertilizer without any special costs. Due to the fact that industry is still more oriented toward export, experts note the lack of fertilizers in Russian agriculture: the amount used in agricultural land is comparable to that used in Africa, but not in developed countries. The market is protected from shocks and relatively stable, as the industry is relatively monopolistic and controlled by large and stable concerns. Only the unexpected discovery of mineral deposits in the East can help change the current situation, which will help to significantly expand the geography of the region.
Development prospects
The production of mineral fertilizers in Russia now completely depends on whether the country can overcome global competition. The urgent issue is the modernization of enterprises aimed at reducing energy costs in production: the world market is gradually saturated with cheaper products, which Russian manufacturers are not yet able to compete with.
As for domestic sales, everything is in the hands of the state: the domestic demand for fertilizers will depend on the size of subsidies to agricultural entities. Recently, Russian policy has been directed at expanding land and sown areas, which is impossible without the use of various types of fertilizers.
Conclusion
Summarizing the above, it should be noted that, despite a number of difficulties, the production of mineral fertilizers in Russia is at a very high level and demonstrates trends in the development of the industry. Moreover, the current orientation of the state towards the development of agriculture, as well as an increase in global demand for fertilizers, are excellent incentives for modernizing enterprises and expanding their assortment. It is likely that this will help Russia improve its position in the world market by reorienting itself to new, yet inexperienced partners.