Serbia’s fertilizer sector combines traditional structures with emerging modern outlooks. Domestic producers maintain competitive export capabilities, and the national market remains robust in demand. Farmers are increasingly aware of environmental concerns and efficiency needs, even if financial constraints limit rapid change.
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For international companies and investors, Serbia offers:
- a large, stable fertilizer market,
- significant import demand,
- growing opportunities for sustainable technologies,
- and strategic positioning for regional distribution.
With targeted investments, stronger extension services, and a more secure flow of raw materials, Serbia could align more closely with the broader European green transition—benefiting both the agricultural economy and environmental performance.
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Fertilizer production
Serbia’s fertilizer sector in 2025 stands at the crossroads of economic pressure and import dependency. Since natural gas is the primary feedstock for producing nitrogen-based mineral fertilizers, instability or higher costs in gas supply could reduce fertilizer output or raise production costs for Serbia’s fertilizer sector.
The United States has imposed sanctions on Serbia’s main national petrol company, Naftna Industrija Srbije (NIS), due to its majority Russian ownership, threatening refinery operations and complicating crude supply and payments. As 2026 approaches, Serbia still lacks a finalized long-term gas supply agreement with Russia, and while short-term extensions have kept deliveries flowing, there is uncertainty about contract renewal beyond year-end. Because Serbia is heavily dependent on imported Russian natural gas—transported via Balkan Stream—any disruption or delay in securing a 2026 gas deal poses risks to this energy-intensive industries.
While domestic fertilizer producers such as Elixir Zorka and Elixir Prahovo maintain strong production capacities—exporting around 300,000 tons of NPK (Nitrogen, Phosphorus, Potassium (K) products annually—the country remains structurally dependent on imported raw materials, especially ammonia, phosphorus, and potassium. Annual national fertilizer consumption ranges between 850,000 and 900,000 tons, split between complex NPK fertilizers and nitrogen fertilizers. Volatility in global gas markets continues to be the largest vulnerability in Serbia’s supply chain, given that 80% of nitrogen-based fertilizer cost is tied to gas prices.
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Farmer behavior
On the farmer side, a national survey of 1,085 Serbian agricultural producers conducted by Lidington Research in August 2025 reveals a market dominated by small and medium-scale farmers, limited planning capacity, and growing—yet cautious—interest in sustainable farming practices.
The Lidington Research survey paints a picture of a Serbian fertilizer market characterized by reactive, short-term purchasing habits and limited access to professional advisory support. The farm structure itself reflects underlying economic fragility: only 45.9 percent of farmers operate registered farms, and just a quarter rely solely on agriculture for their income, with most depending on off-farm employment to sustain their households. Purchasing behavior follows a similarly constrained pattern. Fertilizer buying peaks in the months of January to March in preparation for spring sowing, and nearly half of farmers purchase inputs strictly “as needed,” while only 16 percent plan their purchases six months or more in advance. This lack of long-term planning leaves many producers exposed to peak-season prices and recurrent supply risks.
Advisory services play only a limited role in decision-making regarding the use of fertilizers. Just 17.7 percent of farmers regularly consult agronomists, and more than one-third never seek expert advice at all, instead relying on peer exchange, personal experience, or agricultural media for guidance. Distribution channels reinforce traditional patterns: 81 percent of farmers buy their fertilizers from local agricultural stores, while only 9 percent purchase directly from distributors, ensuring that local retail outlets remain the backbone of Serbia’s supply chain.
In terms of product adoption, nitrogen fertilizers remain the dominant input, used by approximately three-quarters of farmers, followed by NPK mixtures at 64 percent and organic fertilizers at 41 percent. More advanced products—such as foliar fertilizers and microbiological stimulants—are still marginal, with only about a quarter of farmers using them at all and just 14 percent applying them consistently. High prices, limited availability, and insufficient information continue to act as key barriers to wider adoption.
Soil testing practices further illustrate the room for improvement: 52 percent of farmers never conduct soil analysis, and only 8 percent test their soils on a regular basis. Yet despite these gaps, environmental considerations are slowly taking root. More than half of farmers report taking ecological impact into account when choosing fertilizers, and 26 percent say they would be willing to pay more for environmentally friendlier products—though typically only within narrow financial limits.
Above all, economic pressure remains the defining factor shaping farmer behavior. Nearly 80 percent of respondents indicate that rising fertilizer prices have significantly increased their production costs, often forcing them to delay purchases, reduce application rates, or otherwise scale back their fertilizer use. Together, these findings reveal a sector that is adaptive but financially constrained, increasingly aware of sustainability goals yet still limited by structural and economic realities.
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Challenges and Opportunities
Key challenges facing the sector include a high dependency on fertilizer imports (particularly nitrogen products) which makes the market vulnerable to fluctuations in global supply and pricing. This vulnerability is further amplified by exposure to international gas prices, a major cost driver in fertilizer production, resulting in persistent price instability. Adoption of modern agricultural inputs is also constrained by weak advisory services, leaving many farmers without the technical guidance needed to improve efficiency. At the same time, the farmer base remains highly price-sensitive and often limited in liquidity, reducing their ability to plan purchases or invest in advanced products. Finally, Serbia faces structural risks due to its longstanding reliance on Russian supply routes, which continue to shape both availability and pricing across the sector.
The key opportunities lays in the strong and steady demand for fertilizer imports, as Serbia’s nitrogen market is expected to remain dependent on international suppliers for the foreseeable future. At the same time, a growing interest in sustainability among farmers is creating opportunities for premium, eco-friendly, slow-release, and efficiency-enhancing products. The sector also shows clear modernization potential: farmers demonstrate a willingness to improve efficiency, provided they receive better information, stronger advisory support, and access to suitable financing mechanisms. Additionally, Serbia’s substantial NPK production capacity and strategic geographic position give it the potential to develop into a regional export hub for fertilizer distribution and processing across the Balkans.
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Domestic production – facts & figures
NPK (Nitrogen (N), Phosphorus (P), and Potassium (K))
- Serbia produces roughly 550,000 tons of NPK fertilizers annually.
- Approximately 300,000 tons are exported, positioning Serbia as a notable regional supplier.
- Domestic NPK production requires about 750,000 tons of sulfuric acid, partly supplied by Zi Jin, with the remainder imported.
- Key vulnerabilities include the import of ammonia, phosphorus (whose global price rose by over 300%), and potassium, historically sourced from Russia and Belarus.
Alternative suppliers now include Canada, China, Jordan, Israel, and Kazakhstan.
Nitrogen fertilizers
Serbia’s annual nitrogen fertilizer needs reach 400,000–450,000 tons:
- Urea: 200,000–250,000 tons
- Ammonium nitrate: 100,000 tons
- KAN (Calcium Ammonium Nitrate): 100,000 tons
Despite robust NPK production, Serbia remains a significant importer of fertilizers, particularly nitrogen products.
Almost all nitrogen fertilizers are imported; domestic production is limited to 30,000–50,000 tons of UAN (Urea Ammonium Nitrate) by Promist. Restarting national ammonia production remains financially unfeasible due to high repair costs, staffing shortages, and gas price constraints.
|
Category |
Details |
|
Total Imports |
650,000 tons (€200 million) |
|
Key Imported Products |
Urea: 206,000 tons; NPK: 189,000 tons (together 63% of all imports) |
|
Main Import Supplier |
Russia (57% of all urea imports; 76% of all NPK imports) |
|
Secondary Suppliers |
Austria, Croatia, Romania |
|
Total Exports |
488,000 tons (€178 million) |
|
Key Exported Products |
NPK (€94 million); NP fertilizers |
|
Main Export Destinations |
Ukraine, Romania, Hungary |
|
Trade Position |
Serbia is both a major importer of raw materials and a regional exporter of finished fertilizers |
Import/ export 2021 – PKS