Russian fertilizer producer Acron will cut output by up to 50 per cent this month at its plants in Russia and China as cash-strapped agricultural producers scale back orders and as prices for its products fall.
The production cuts, affecting all three Acron facilities, will remain in place at least until the end of November, company chairman Alexander Popov said in a statement Oct. 29.
“The global liquidity crisis has impacted the financial position of agricultural producers; many of them are experiencing difficulties with obtaining debt financing,” Popov said.
“Moreover, higher yields in the second half of this year caused lower prices for agricultural products globally. Demand for mineral fertilizers has dropped over the last couple of months, which has also resulted in lower prices.”