Hungary: Fertilizer prices rise steeply, demand plummets
Agricultural producers bought much less fertilizer this year than in 2021 as prices continue on a steadily increasing trajectory.
According to the latest data on the Hungarian fertilizer market by the Research Institute of Agricultural Economics, the demand for fertilizers in the first quarter of 2022 decreased by 21% compared to the same period in 2021.
The largest drop occurred in the demand for ammonium nitrate and potassium chloride, while the highest demand was for calcium ammonium nitrate and Nitrosol fertilizers.
As expected, the purchasing of fertilizers went up in the first quarter. This seasonal increase however, was 21% lower than in 2021. Meanwhile, average fertilizer prices increased by 1.7-17.1% in the observed period.
The most sought-after fertilizers, calcium ammonium nitrate and Nitrosol, together made up 88% of the fertilizers sales in March. Meanwhile, these products were 2-3.5 times more expensive than in March, 2021. The increase in prices mostly affected nitrogen-based fertilizers.
In the case of ammonium nitrate and potassium chloride, the demand dropped by 67% and 37%, respectively. Market shocks and the ongoing Russian invasion of Ukraine continue to affect these developments in a major way.
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