Rising natural gas prices have caused destabilization in the domestic mineral fertilizer market, forcing Grupa Azoty to temporarily suspend orders. This decision has caused concern among farmers preparing for spring sowing. The Ministry of Agriculture and Rural Development has initiated talks with the chemical giant's management, aiming to restore sales and stabilize prices. The ministry appeals for calm while simultaneously denying reports of a complete production halt at the plants in Puławy.
Suspension of fertilizer sales
Grupa Azoty has suspended accepting new orders for mineral fertilizers due to a drastic increase in gas prices.
Intervention by the Ministry of Agriculture
The agriculture ministry is demanding explanations from the chemical giant's management and the immediate unblocking of supplies to farms.
Gas price pressure
The rise in blue fuel prices has hit Grupa Azoty's share price, which has reached multi-year lows.
The domestic agricultural market is facing a serious challenge due to the sudden restriction in the availability of fertilizer products. The main cause of the crisis is the sharp increase in natural gas prices, which constitutes a key cost component in chemical production. As a result, Grupa Azoty, the national industry leader, decided to suspend accepting new orders, which market experts interpret as an attempt to avoid financial losses amid dynamically changing production costs. This situation is particularly severe for grain and rapeseed producers, who are entering the crucial phase of top-dressing fertilization. Agriculture Minister Czesław Siekierski, along with Deputy Minister Michał Kołodziejczak, have taken immediate explanatory actions. Ministry representatives have sent a letter to Grupa Azoty's management demanding explanations and the immediate resumption of supplies to farms. The company's president reassures in public statements that production has not been stopped, and the current blockages are of a logistical-commercial nature, resulting from the need to update price lists in response to energy pressure. Meanwhile, farmers, remembering the drastic price hikes of 2022, are demanding the government launch special subsidies and increase the pool of cheap operating loans. Nitrogen fertilization is the most important agrotechnical treatment in crop cultivation, determining yields by over 50 percent. Poland, as one of the largest food producers in the European Union, is heavily dependent on the stability of supplies from the plants in Puławy and Police.The problems of Polish agriculture are compounded by difficult weather conditions. Local field flooding and water stagnation prevent heavy machinery from entering, delaying the timely application of fertilizers. Experts note that applying nitrogen too late in winter crops can result in an irreversible decline in grain quality parameters. The ministry announces it will monitor distributors to prevent speculative price hikes for ammonium nitrate, which on the secondary market is already reaching levels exceeding 1800 złoty per ton. „Nie chcemy powtórki z 2022 roku. Nawozy mamy dostępne w kraju, produkcja trwa, a rolnicy muszą mieć certyfikat bezpieczeństwa dostaw przed startem sezonu wegetacyjnego.” (We don't want a repeat of 2022. We have fertilizers available in the country, production is ongoing, and farmers must have a supply security certificate before the start of the growing season.) — Stefan Nowak Meanwhile, on the international stage, information is arriving about a deep energy crisis in Cuba, where a lack of fuel has led to a nationwide blackout. Polish diplomacy and humanitarian organizations, such as the Sant'Egidio Community, are mobilizing aid in the form of medicines and food for the island's inhabitants. While these events may seem distant, both cases—Polish and Cuban—demonstrate the vulnerability of modern economies to shocks in the energy raw materials sector.
Mentioned People
- Michał Kołodziejczak — Deputy Minister of Agriculture, actively involved in mediation with fertilizer producers.
- Stefan Nowak — Representative of the agricultural sector commenting on the situation in the fertilizer market.
- Leon XIV — Pope delivering a message for Lent.