Prime cost has reserves on decrease

Belaruskali expects price increase on its production in world markets from the second quarter
By Yuri Pinchuk

“Predictions of our activity for January were not bad. We expect to exported about 500,000 tonnes. According to international analysts, in 2014, export of potash fertilisers will increase in comparison with the last year. So I think that the price of fertilisers should begin to increase from the second quarter,” said Valery Kirienko, Belaruskali’s Director General.

The Director General also made the point that today’s price of potash fertilisers has decreased to a very low level. For that reason, some enterprises of the world potash industry have been forced to reduce production and staff in order to stay in profit. According to Mr. Kirienko, Potash Corp (Canada), Кali&Salz (Germany), ISL (Israel) are taking such steps. In particular, the Canadian producer has already made one thousand people redundant and ISL plans to make 10 percent of its workers redundant. During the lay-off people are furloughed.

“When we analyse the number of employees of companies similar to Belaruskali, we find that it is about half of what we have. I want to say that redundancy is for us an unacceptable measure,” said Mr. Kirienko, He has noted that the enterprise will reduce the prime cost of its products at the expense of cost saving, of energy conservation, of production modernisation and of the increase of productivity. Besides, in 2014 the enterprise will outsource some parts of non-core activities.

The Director General said that in spite of the decrease of production volumes at the enterprise, all positions have been kept. “We will aim at a salary increase and the increase of tariff rates of wages of workers in 2014,” said Mr. Kirienko, noting that it will depend on the volumes of exports and the increase of productivity.
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