Ukraine's agricultural sector is largely dependent on stable domestic production of mineral fertilizers. The industry combines agriculture, energy, industry, logistics, and exports, and its recovery could become one of the factors of the country's economic resilience.
Fertilizer production is of strategic importance for Ukraine, because without a reliable domestic supply of nitrogen fertilizers, farmers' costs increase, yields fall, and dependence on imports grows. This is stated in the blog by Alexander Muzhel on Korrespondent.net, reports UNN.
Details
The article notes that Ukraine has over 30 million hectares of arable land and is among the major exporters of wheat, corn, and sunflower oil. At the same time, modern agriculture is largely dependent on nitrogen fertilizers, which maintain soil fertility and yields.
The author points out that ammonia production is directly linked to natural gas: about 1,000 cubic meters of gas are needed for one ton of ammonia. Such a process creates greater added value for the economy than the export of raw gas.
The blog also states that the Ukrainian fertilizer industry was historically highly concentrated. Among the key enterprises mentioned are Cherkasy Azot, Rivneazot, DniproAzot, and the Odesa Port-Side Plant. The OPP is described in the article as one of the country's most valuable industrial assets due to its production capacities, Black Sea location, and logistics infrastructure.
The full-scale war, military risks, fluctuations in natural gas prices, logistical constraints, and a lack of financing have led to the shutdown or slowdown of enterprise operations. As a result, Ukraine is increasingly dependent on fertilizer imports, making farmers more vulnerable to international price fluctuations and supply disruptions.
The article separately draws attention to the connection between the fertilizer market and global energy and geopolitics. In particular, tensions in the Middle East and risks to shipping through the Strait of Hormuz could affect global gas and fertilizer markets.
Context
Before the full-scale war, Ukraine had sufficient capacity to cover domestic fertilizer needs and maintain export opportunities. Now, part of this infrastructure is idle.
The article emphasizes that the restoration and modernization of fertilizer production could support the agricultural sector, industrial jobs, tax revenues, exports, and attract investment during the recovery period.