Fertilizer producers in Vietnam grapple with falling prices-Xinhua

Fertilizer producers in Vietnam grapple with falling prices

Source: Xinhua| 2023-03-10 12:45:45|Editor: huaxia

HANOI, March 10 (Xinhua) -- Fertilizer prices in Vietnam are falling as cost of natural gas and farmers' demand decrease, local media reported on Friday.

The decline in prices is considered a boon for farmers who are able to reap the benefits, however, it leaves production enterprises grappling with challenges, the local newspaper Vietnam News reported.

The market has continued to witness a sharp drop in prices, with urea fertilizer currently at its lowest price point in over two years, the newspaper said.

As the output selling price is low and slow, inventory pressure and financial costs are extremely large, and profit margins are falling rapidly.

Vu Xuan Hong, deputy general director of a local fertilizer and chemical company, said that the drop in fertilizer prices helped farmers reduce difficulties, especially in the context of high fertilizer prices in the last two years. However, the current situation also puts great pressure on fertilizer enterprises, especially agent systems.