Both Poland and many other EU countries are significant importers of fertilizers, including urea. Dependence on foreign supplies makes the market vulnerable to price fluctuations and disruptions in supply chains. Domestic fertilizer production capacity does not fully cover domestic demand, necessitating imports, especially from regions with lower production costs, such as Russia, Belarus, Middle Eastern and Asian countries.

Dependence on imports makes Poland’s fertilizer market vulnerable to external factors such as political changes, armed conflicts and fluctuating production costs in supplying countries. The increase in the price of natural gas on international markets, which is a key raw material for the production of nitrogen fertilizers, has a direct impact on the price of fertilizers imported into Poland. The costliness of production in the EU contributes to the price advantage of non-EU suppliers, but at the same time increases the risk of supply chain disruptions.

MBF Group SA is a dynamically growing company that successfully imports and distributes high-quality urea and AdBlue on the Polish market and in European countries. Through cooperation with reliable suppliers from Central Asia, MBF Group provides its customers with products that meet the highest quality standards, including technical urea N46 with the required purity and compliance with EU standards.

To date, the company has delivered to contractors in Poland, Slovakia, Germany, Italy, Romania and Ukraine, confirming its reliability and flexibility in fulfilling orders for the production of AdBlue and other chemical products. MBF Group SA invites all interested parties to cooperate with us, offering assistance in contracting and supplying urea, fertilizers and AdBlue – with guaranteed quality, compliance with safety requirements and full professionalism.

What should be noted are the problems with urea and fertilizer trade from eastern markets, where sanctions and import restrictions imposed on Russia and Belarus are planned. This has resulted in price increases, as well as a drive by Polish importers and distributors to seek alternative sources of supply, which may entail higher transportation costs and less stability of supply. Ultimately, the high dependence on imports makes fertilizer prices in Poland and the EU vulnerable to fluctuations in global commodity prices and volatile geopolitical circumstances.

Restrictions and limitations on fertilizers from Belarus and Russia

1. Customs Duties and Sanctions: Both Poland and the European Union as a whole have imposed a number of restrictions on fertilizer imports from Belarus and Russia. Fertilizer exports, including urea, from these countries may be subject to tariffs and sanctions as part of sanctions imposed due to the war in Ukraine and human rights violations by the Belarusian regime.
2. Import Ban and Embargo: The import of certain fertilizers from Belarus and Russia is completely banned, especially for potash fertilizers, which are a key export product of Belarus. This includes certain types of nitrogen fertilizer, although urea can sometimes be imported by companies with special licenses. However, the procedure for obtaining such permits is complicated, and each delivery is subject to detailed inspection.
3. Substitutes and Supplier Diversification: To reduce dependence on Russian and Belarusian supplies, Polish and European agricultural companies and fertilizer distributors are looking for alternative suppliers from other regions, such as countries in the Middle East, Central Asia and South America.

Europe’s dependence on urea and fertilizer supplies

As one of the leading agricultural regions, the European Union is facing serious challenges due to its dependence on imported fertilizers. Rising prices and fertilizer shortages, especially after Russia’s invasion of Ukraine, have significantly raised the cost of agricultural production, burdening farmers and threatening the stability of food production. Supply disruptions from major sources such as Russia, Belarus and Ukraine have forced EU countries to seek alternative suppliers, generating further costs and adding to growing global food security problems. In addition, volatile mineral fertilizer prices can limit the availability of food on the market, causing a domino effect that goes beyond the EU and affects the global agricultural market.

The fertilizer crisis in Europe also poses environmental and logistical challenges, increasing the carbon footprint resulting from transportation and mineral fertilizer production. Although the EU has decided to suspend tariffs on some fertilizers from third countries (in addition to Russia and Belarus) to improve product availability, the move raises concerns about the competitiveness of European producers and potentially increases dependence on imports. Against the backdrop of the EU’s strategic autonomy and sustainable development goals, there is an emerging need to implement long-term solutions toward greener and more local methods of fertilizer production that could reduce costs and ensure the security of food production in Europe.

Fertilizer and urea price increase

Fertilizer prices, including urea, have risen significantly in recent years. Among the influences were. increased production costs due to higher prices for natural gas, a key raw material for nitrogen fertilizer production, as well as supply constraints caused by the conflict in Ukraine.

1. Impact of natural gas prices: Natural gas is the primary raw material in nitrogen fertilizer production, as it accounts for more than 70% of the cost of producing urea and other nitrogen fertilizers. Increased volatility and soaring gas prices in Europe have made fertilizer production more expensive, which directly translates into final prices for consumers. In 2022 and 2023, gas prices reached record levels, forcing some fertilizer plants in the EU to reduce production or halt it altogether. This has reduced supply in the domestic market and increased reliance on more expensive imports.
2. Sanctions on Russia and Belarus: The conflict in Ukraine and the economic sanctions imposed on Russia and Belarus have significantly affected the availability and prices of fertilizers in Poland and Europe. Both Russia and Belarus are among the world’s largest suppliers of fertilizers, and the restriction or complete ban on imports from these countries has reduced the supply of fertilizers to the European market. The result has been an increase in fertilizer prices on the European market and the need to seek alternative suppliers from other regions, which usually means higher transportation and logistical costs.
3. Global demand growth: Fertilizer demand is increasing in global markets due to a growing population and the need to intensify agricultural production to meet global food needs. The increase in demand, especially in the developing economies of Asia and Africa, has created more tension between demand and supply, resulting in higher prices, including in the European market.
4. Variable climatic conditions: Adverse weather conditions in some regions of the world, such as droughts or floods, affect agricultural production levels and can increase demand for fertilizer, further driving up prices. The fertilizer industry is therefore forced to respond to these changes, which creates further price tensions.

The increase in the price of fertilizers, including urea, on the European market is the result of a combination of factors that lead to instability and increasing financial burdens for the agricultural sector and affect food prices, which is also felt by consumers.

Importance of fertilizers for agriculture

Fertilizers are essential for maintaining high agricultural productivity. Their availability and price have a direct impact on food production costs and farmers’ incomes. Under the intensive cropping conditions characteristic of Europe, nitrogen fertilizers are even necessary to meet production requirements and ensure an adequate food supply.

1. Primary source of nitrogen: Urea and other nitrogen fertilizers provide plants with nitrogen, which is one of the three key macronutrients needed for plant growth (along with phosphorus and potassium). Nitrogen promotes leaf development and photosynthesis, which contributes to higher biomass production. Under nitrogen-deficient conditions, plant growth is stunted and crop yields drop significantly, which can lead to yield losses and lower quality crop production.
2. Increased efficiency of agricultural production: The use of fertilizers allows farmers to increase crop yields per unit area. Thus, with limited land resources, more food can be produced, which is especially important in countries with high population densities, such as Poland and other EU countries. Production efficiency is essential for food security, especially in the face of a growing global population and shrinking resources of available agricultural land.
3. Impact on food production costs: Fertilizer availability and prices directly affect agricultural production costs. High fertilizer prices, such as those seen in recent years, increase farmers’ operating costs, which can lead to higher food prices on the market. These costs cannot always be fully passed on to consumers, which forces farmers to make difficult financial decisions and can limit their ability to reinvest in farm development.
4. Ensuring stability of food supply: Maintaining a stable food supply is crucial to any country’s economy, and fertilizers play a key role. Thanks to fertilizers, farmers are able to achieve stable yields, which translates into the constant availability of agricultural products and protection against shortages in the food market. In times of supply chain disruptions, such as those caused by the COVID-19 pandemic and the conflict in Ukraine, the stability of agricultural production and food security have become priorities for Poland and the EU.

Fertilizers are an integral part of modern agriculture and are the foundation for maintaining high productivity, stability and competitiveness of agricultural production. Their availability and price have a huge impact on the operation of the agricultural sector, and changes in the fertilizer market can have far-reaching consequences not only for farmers, but also for the country’s economy and food security.

Dependence of Poland and the EU on urea and fertilizer imports

The urea and nitrogen fertilizer market in Poland and the European Union is heavily dependent on imports, making it vulnerable to disruptions related to the geopolitical situation and fluctuations in commodity prices. Poland, like other EU countries, imports a significant amount of fertilizer, especially from eastern countries such as Russia and Belarus, where fertilizer production is cheaper due to lower energy costs.

Fertilizer costs have risen dramatically in recent years due to higher prices for natural gas, which is necessary for nitrogen fertilizer production, and numerous trade restrictions. High fertilizer prices increase farmers’ production costs, which affects food prices and the stability of the agricultural market. Fertilizer availability and prices are therefore key to ensuring food security and maintaining the competitiveness of the agricultural sector.

The introduction of sanctions and tariffs on fertilizer imports from Russia and Belarus due to the conflict in Ukraine further complicates the situation in the European market. The embargo on selected products, such as potash fertilizers, and additional restrictions on nitrogen fertilizers are forcing EU countries to seek alternative sources of supply, with higher transportation costs and the risk of instability in supply chains. Poland and other EU countries are taking steps to increase domestic production and support domestic fertilizer producers, but the market remains heavily dependent on imports, which will continue to affect fertilizer prices and farmers’ spending.