Nitrogénművek buying artificial fertilizer early
Nitrogénművek, Hungary's only producer of artificial fertilizer, urged farmers to buy fertilizer early to avoid delivery problems expected in Q1 2022 and to take advantage of prices that match current input costs in a statement issued on Friday, according to a report by state news wire MTI.
The company noted that artificial fertilizer prices have risen to historical highs this year, as the result of low industry investment during a period of depressed prices in 2016-2020.
Nitrogénművek said it is supplying Hungarian farmers with fertilizer at "Central European market prices" on a continuous basis, responding to concerns aired earlier by the National Agriculture Chamber (NAK) over the domestic supply of artificial fertilizer.
The manufacturer produced 87,000 tonnes of fertilizer in the period between November 1 and 23, while it delivered 89,000 tonnes.
Nitrogénművek acknowledged that it suspended its commercial activities for four weeks early in the autumn because of "sky-high energy prices", but restarted them from October.
The company communicated its own concerns regarding "market instability and upside risks" to the Agriculture Ministry and NAK late in September, but was not asked to consult on the matter.
Nitrogénművek said any ban on exports of artificial fertilizer would "be a serious violation of European Union law".
NAK and farmers association MAGOSZ issued a joint statement a few days earlier backing the Agriculture Ministry's position that "all necessary means" must be used to ensure the security of the domestic supply of artificial fertilizer.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.