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Harvest Under Protection: The Development of Agrochemical Production in Russia

To ensure global food security, Russia develops and produces fertilizers and crop protection products. The government has tasked the industry with scaling up production of these essential goods. The output of mineral fertilizers and agrochemicals in Russia is steadily increasing. According to forecasts by the Russian Association of Fertilizer Producers (RAPU), production of all types of fertilizers in the country will reach 65 million tons in 2025, up from a record 63 million tons in 2024. Russia ranks second in the world for mineral fertilizer production after China and is the largest exporter, with an 18% share of the global market.

Russian producers of chemical crop protection products have also made significant progress. Since 2014, their share of the domestic market has grown from 38% to 70%, according to Viktor Grigoryev, member of the government expert council on the chemical industry and deputy executive director of the Russian Union of Crop Protection Product Manufacturers. This growth has been driven by efficient industry practices and strong government support.

Crop Protection as a Key to Food Security

Chemical crop protection products play a crucial role in ensuring food security. Experts estimate that without them, crop yields can drop by 20–60%, as manually controlling pests such as Colorado potato beetles or locusts is extremely difficult, Grigoryev notes. Russia currently produces a full range of crop protection products necessary for safeguarding harvests, including insecticides, fungicides, herbicides, and biopreparations.

In 2024, Russian producers sold 164,000 tons of crop protection products domestically. An additional 48,000 tons were imported by foreign companies, and roughly 18,000 tons of foreign products were produced at Russian facilities.

Industry Poised for Growth

The government has tasked agrochemical producers with supporting agricultural companies to increase output in the agro-industrial complex by at least 25% by 2030 compared to 2021, and to contribute to a two-thirds growth in non-resource, non-energy exports, RAPU head Andrey Guryev previously noted.

RAPU forecasts that the mineral fertilizer industry must increase production by one-third over the next four years, reaching 80 million tons annually, including 22 million tons for the domestic market and 58 million tons for export, a 1.5-fold increase.

Russia’s largest mineral fertilizer producer, PhosAgro Group, has doubled its agrochemical output since 2013, investing 500 billion rubles in production development, CEO Alexander Gilgenberg said. Of that, 200 billion rubles were invested over the last three years. “In terms of capacity, it is as if an entirely new company has been built,” he noted. As a result, the company’s annual agrochemical production grows by 4–5%, with projected output reaching 12.5 million tons in 2025. PhosAgro’s exports have doubled over the past decade to 8.6 million tons.

The national project “New Materials and Chemistry” sets targets for domestic crop protection manufacturers to reach 90% self-sufficiency and, together with “big chemistry” companies, localize the synthesis of active pesticide ingredients.

Following the president’s directive, the process of import quotas for crop protection chemicals is underway, which will further support domestic production and localization, Grigoryev says. The Eurasian Economic Commission is discussing expanding this measure across the entire Eurasian region.

A Decade of Domestic Crop Protection

Transitioning to domestically produced products is the main trend among Russian farmers, and the industry can quickly scale up production, Grigoryev notes. Thirteen Russian enterprises produce crop protection products, with a combined capacity exceeding 400,000 tons, though current utilization is only about 50%. This means domestic production has ample capacity to supply the internal market and meet demand in nearby and distant countries.

Russian companies already operate in 30 countries and are planning to open branches in another 20. Key markets for Russian crop protection products include CIS countries, Latin America, and Africa. In several neighboring countries, Russian companies are market leaders, Grigoryev says.

The Ministry of Industry and Trade, together with industry unions and leading producers, is working to establish full domestic production chains for active ingredients, requiring substantial investment and government support.

To reduce costs and remove barriers for high-tech crop protection products, the government is considering a single-window registration system, allowing trials to be conducted only in state institutions and defining clear, transparent registration requirements, Grigoryev explains.

Innovation and Technological Leadership

The national project “New Materials and Chemistry” encourages chemical companies not only to expand output but also to achieve technological leadership by implementing advanced developments and innovations.

Russia already possesses some of the world’s most modern crop protection production facilities, which continue to be upgraded. Over the past seven years, more than 30 billion rubles have been invested in the sector to build new plants and research centers. For example, August is completing a research center with clusters for developing active ingredients and chemical and biological crop protection products.

One of the largest producers, Shchelkovo Agrokhim, launched a fully automated crop protection production facility in 2024, covering 5,000 sq. meters. Funded with support from the Industrial Development Fund, the company is led by an RAS academician and employs four doctors of science, 40 candidates of science, and over 130 researchers. The enterprise develops innovative products focused on high efficiency, rapid action, and minimal pesticide impact on soil and crops, holding over 120 patents, including international ones.

Domestic producers are also actively developing biopreparations, including products for greenhouses and pre-harvest applications.

PhosAgro annually invests around 2.5 billion rubles in R&D, with significant attention to agri-biotechnology research. “Ten years ago, we had 25 fertilizer brands, and 20 years ago only five. Today we have 58, including 16 with microelements. Our strategy aims to expand to 100 brands by 2030,” says Gilgenberg. In 2019, PhosAgro established the Innovation Center for developing new fertilizers and feed additives.

AO Ammoniy in Tatarstan, one of Europe’s largest nitrogen fertilizer producers, produces over one million tons annually, including ammonia, urea, nitric acid, ammonium nitrate, urea-ammonium mix, and methanol. The facility operates on a full-cycle principle, from experimental crop cultivation and digital technology development to agro-consulting. Urea and ammonia, key products, form part of 23 production chains created under the national project “New Materials and Chemistry.”