Mineral fertilizers market in Uzbekistan
The need for mineral fertilizers. At the beginning of 2019, the estimated need for agriculture in Uzbekistan in mineral fertilizers amounted to 395 thousand tons, including nitrogen – 221 thousand tons, phosphorus – 162 thousand tons, potash – 12 thousand tons. At present, the production of phosphorus and potash fertilizers provides only about 30% of demand (2019). The main production facilities of enterprises are worn out, which leads to an increase in energy costs and an increase in the cost of production.
Analysis of the structure of demand for the regions of Uzbekistan in 2019 showed that more than 70% of the total volume falls on mineral fertilizers based on nitrogen compounds, including urea, ammonium nitrate, ammonium sulfate and others. At the same time, the share of phosphorus and potash fertilizers averages about 19% and 8%, respectively. The greatest need for fertilizers falls on the Kashkadarya (13.1%) and Fergana regions (9.2%). Bukhara, Jizzakh, Samarkand, Surkhandarya and Tashkent regions consume approximately the same total amount of fertilizers, or about 8% each. The lowest demand indicator is in Navoi region (3.3%).
Import-export configurations. The main countries of import of nitrogen fertilizers to Uzbekistan are Turkey, Russia and Germany. Mainly, ammonium nitrate is imported, including mixtures and salts from it, and urea.
In the past two years, phosphorus fertilizers have been supplied exclusively from Turkey and the United States (superphosphates and other mineral (chemical phosphate fertilizers).
The main exporters of mineral fertilizers based on potash compounds for Uzbekistan are Russia (about 50% of the total export share per year), Kyrgyzstan (about 15%) and Turkey (about 16%). The largest amount of supplies falls on potassium sulfate, potassium chloride, and crude potassium salt.
The basis of domestic exports of nitrogen fertilizers is ammonium nitrate, urea, ammonium sulfate and sodium nitrate to Ukraine, Tajikistan, Afghanistan, Kyrgyzstan and Kazakhstan. The aggregate export indicator for this group of fertilizers amounted to more than 80% in 2017 and 2018 (urea is the main export commodity for this fertilizer category).
Phosphate fertilizers account for the smallest share of exports. Superphosphates are the only export commodity from Uzbekistan to Tajikistan, Georgia and Kyrgyzstan.
Over the past two years, the countries of Southeast Asia, namely Malaysia and Indonesia, have occupied the bulk of the export of potash fertilizers from Uzbekistan. Exports in 2018 amounted to USD 30,405 thousand to Indonesia and USD 2,908 thousand to Malaysia.
Prospects for modernization. According to the data of Uzhimsanoat JSC, from 2017 to the present, 17 investment projects with a total value of about US $ 3.1 billion are being implemented to meet the demand for mineral fertilizers. In order to expand the diversification of the chemical industry until 2025, it is planned to implement additional projects in the amount of about $ 4.2 billion.
According to experts, the need for nitrogen fertilizers in Uzbekistan is covered by 73%, in phosphorus fertilizers – by 20%. For the growth of domestic production in the medium term, it is planned to implement 9 projects with a total cost of $ 2.8 billion. Upon completion of the investment projects, it is planned to fully meet the needs of the agricultural sector in mineral fertilizers based on phosphorus, nitrogen and potash fertilizers.
In the context of the strengthening of integration processes, domestic producers of mineral fertilizers should accelerate the modernization of the existing potential, taking into account the priorities adopted in the country for the development of agricultural production in the long term.
