"Finished Element Fertilizers, Already Secured 35,000 Tons... No Shortage Expected Until February"

[Image source=EPA Yonhap News]

[Sejong=Asia Economy Reporter Kim Hyunjung] The government announced that the quantity of finished fertilizer products already secured exceeds the demand for urea fertilizer needed for winter crop cultivation by the end of this year, so there will be no supply shortage until February this year. It was explained that the supply volume for January to February next year is also more than 50,000 tons (t) above the expected demand.

On the 10th, Kim Hyun-soo, Minister of Agriculture, Food and Rural Affairs, held an emergency meeting to check the situation of agricultural machinery requiring urea fertilizer and urea water, announcing these details. This meeting discussed support measures such as early procurement of raw materials by identifying difficulties in farming operations caused by shortages of urea fertilizer and urea water.

According to the Ministry of Agriculture, Food and Rural Affairs, the quantity of finished fertilizer products already secured (35,000t) exceeds the demand for urea fertilizer needed for winter crop cultivation by the end of this year (including some compound fertilizers, 18,000t). The supply volume available in January to February next year (95,000t) is also expected to surpass the anticipated demand (44,000t).

To support the smooth procurement of raw materials such as urea, the National Agricultural Cooperative Federation (Nonghyup) will first change the purchasing contract method to reflect the increase in raw material prices linked to fertilizer purchase prices. The contract price system was changed from a fixed annual price to a quarterly adjustment system, creating conditions for fertilizer companies to secure raw materials.

In November, active consultations will be held to allow fertilizer manufacturers to import urea fertilizer from Middle Eastern countries (Bahrain, Qatar, Saudi Arabia, etc.) outside China, diversifying import sources. The Ministry will also regularly manage each company's raw material contract performance and import timing. The Ministry of Agriculture, Food and Rural Affairs plans to consult with related ministries, including the Ministry of Economy and Finance, to expand support for fertilizer raw material purchase funds and continue the application of zero tariff rates (from 2% to 0%). The government intends to make all-out efforts to import 154,000t of Chinese urea fertilizer as requested by the industry through a pan-governmental approach.

This content was produced with the assistance of AI translation services.