Yerevan October 25
Alina Hovhannisyann. A distribution network of one of the largest Russian producers of mineral fertilizers, ''EuroChem'' company, will appear in Armenia, which covers about 30% of the Russian fertilizer market. On October 25, the company signed the corresponding distribution agreement with 4 Armenian fertilizer importers – ''Sapsan Trade'' LLC, ''Artagro' LLC, ''Himimpex' Closed Joint Stock Company and ''Hey and Em'' LLC.
In an interview with journalists, ''EuroChem'' company, CEO Maxim Seryogin noted that the company has been cooperating with Armenia since 2016, with the result that last year about 25 thousand tons of fertilizers were supplied to the Armenian market. "This year we made a decision for ourselves to ensure a full-fledged presence in Armenia by organizing a distribution network here. It is very important for us to assume the role of not only suppliers, but also to become a technology partner for Armenia. Because the agriculture of your country is developing, it is moving forward, the area under crops is expanding, we see that there are high needs in the development of technologies for the cultivation of special crops, in particular vegetables and fruits. However, there is a need to increase the yield and quality of field crops, including wheat and corn. Therefore, we are not so interested in the supply of fertilizer, but more in the development of technologies, and their adaptation to the climatic conditions of Armenia. For this we have accumulated colossal experience and knowledge that we want to offer to the Armenian consumer, "he said.
Answering the question of ArmInfo regarding pricing policy from the point of view of competitiveness, M.Seryogin noted that the fertilizer market is specific, in particular, very volatile. According to him, the prices of fertilizers change significantly during the season. When there is a demand for fertilizers, in particular in the spring, prices, as a rule, begin to grow. ''This is exactly what we are organizing in Armenia now – namely, the distribution network – this will allow reducing price fluctuations. Because the main role of a distributor is to purchase fertilizers in a season when prices are low by arranging their delivery and storage. And already in the peak season, when demand rises, with fertilizers purchased at low prices to provide them at a corresponding cost to the client. This is our main task, "the general director of ''EuroChem'' company explained.
Speaking about the coverage of the Armenian market, M. Seryogin noted that today the company's share in the Russian market is about 30%. In this regard, given the small distance of the ''EuroChem'' enterprises from the border of Armenia, particularly in the Stavropol and Krasnodar Territories, the company plans to cover no less than the share that is on the Russian market. "We know that in Armenia there are suppliers from other countries, in particular Georgia, Iran. Well, for ourselves, we consider Armenia a home market, "he stressed.
In conversation with ArmInfo, Head of export sales of "EuroChem" Firdousa Yunusova noted that the signing of the agreement will allow the company to reach the final client of Armenia. "Our goal is not just to sell, but depending on what the farmer grows and on what land it works to offer the appropriate technology. We came to consolidate, as we understand how fast the Armenian market is developing in terms of agricultural production and what kind of relations are building up between our countries as a whole. We, as a separate link in the common geopolitical system, will contribute to strengthening ties between our countries, which is very important, "she noted. F. Yunusova. In particular, she noted that there is already a preliminary agreement with the Institute of Agriculture of the Republic of Armenia on jointly conducting experimental testing activities, which we conduct in the Russian Federation about 200 times a year. And in the beginning of the next year, the company provides for holding seminars with Armenian farmers.
In turn, Karlen Alexanyan, director of ''Chemimpex'', added that cooperation with Russian ''EuroChem'' has been launched since 2016. He noted that samples of imported fertilizers before delivery on the Armenian market are tested in the laboratory of the Ministry of Agriculture of the Republic of Armenia. "There has never been a case of inconsistency in the quality of products imported from Russia. Moreover, I should note that in 2016 we delivered 1,000,000 tons of ''EuroChem'' fertilizers to the Armenian market, in 2017 the supply volume doubled, and by the end of 2018 we expect even higher growth rates, "K. Aleksanyan said.
To note the annual production of fertilizers ''EuroChem'' exceeds 15 million tons. By 2022, according to the general director, Production will reach 22 million tons thanks to the implementation of a number of large investment projects that will expand production capacity. The company produces the entire range of mineral fertilizers, in particular, can offer classic fertilizers (large-tonnage), innovative solutions, biological preparations (for plant nutrition), water-soluble fertilizers and trace elements. ''EuroChem'' has over 2,300 regular customers and 80 shipping points. Production is exported to the markets of Europe, America, Brazil and China.