Belarus may reduce sales of potash fertilizers in 2016 to USD 2 billion

In January 2016, Belarus produced 544000 tons of potash fertilizers, which is down by over one third compared with January 2015. Belarus’ potash fertilizer exports in January 2016 reduced by 1.8 times due to negative trends on the world potash market and a slump in potash prices down to USD 200 per tonne on some markets. Belarus is likely to reduce potash production due to lower demand from buyers – China, India and Brazil, which is likely to drop currency proceeds to USD 2 billion. The government will need additional funds to bridge the funding gap due to lower potash proceeds and Belarusian potash industry is likely to slow down. In addition, Belaruskali will have to continue to downsize its staff and reduce workers’ wages.