The Cotton Inter-Trade Association (AIC) of Benin fixed the selling price of fertilizers for the 2017/2018 season as follows:
• Cotton Fertilizers (NPK 14-23-14+5S+1B; Urea): 12.000 FCFA per 50 kg bag
• Cereals Fertilizers (NPK 14-23-14, NPK 15-15-15, Urea, MOP, SOP): 11.500 FCFA per 50 kg bag
The market was characterized by a revival of fertilizers' demand for food crops (NPK 15 15 15 and urea) due to the start of the first rains. However, supply has not followed demand, as most operators did not have fertilizers in stock yet. On the other hand, the prices did not vary significantly and remained between 13.700 and 15.700 FCFA per 50 kg bag, depending on the operators and the locality.
In Burkina Faso, subsidized fertilizers are still being distributed to the regional directorates. The arrival of the first rains has favored an increased sale of commercial fertilizers, since subsidized fertilizers are not in sufficient quantity for producers. Due to all these factors, commercial fertilizer sales are expected to remain on the rise for the next 4 weeks.
In the north, there were heavy stormy and regular rains. This led to the implementation of food crops such as corn and the early fertilization of these crops, resulting in upward sales of NPK 15-15-15. In the north and northeast, cotton fertilizers are available in the agricultural cooperative stores. In the South, East and South-West zone, sales of NPK 0-23-19 cocoa fertilizer were down from the previous month despite the continuing rainfall. This could partly be explained by the purchase farm gate price of cocoa which has been revised downwards for this campaign. Nevertheless, sales have been on the rise for NPK 12-22-22 and urea on vegetable crops as well as NPK 15-15-15 on maize in southern areas of the country.
Currently fertilizer products are either sold at commercial or subsidized price. This year's subsidy program has been launched with a 50% reduction for all fertilizer products under the program, and farmers are to pay GHS 57.50 for NPK and GHS 47.50 for Urea. According to agro-dealers in the southern sector there was improvement in sales in May as compare to last month. Meanwhile, dealers in the North were expecting the rains this month to do good fertilizer business.
In Mali, fertilizer sales have remained slow, except for a few cashew nut production areas such as Sikasso, Kolondièba and Dioïla where producers have invested part of the proceeds from the sale of their cashew nut in the purchase of fertilizer. The fertilizers that sold best in these three locations were NPK 15-15-15 and urea.
Senegal: In Senegal, wintering is approaching, and even if sales trends among resellers have not changed from the previous month, the fertilizer market is beginning to undergo changes, especially with the preparation of the implementation of agricultural subsidized inputs such as fertilizer which occupies a central place. The State of Senegal has already fixed the prices of subsidized fertilizers for the 2016 - 2017 season which are as follows:
- 270,600 FCFA / T, ie 55% subsidy rate for fertilizer NPK 6-20-10;
- 337,000 FCFA / T, ie 50% subsidy rate for fertilizer NPK 15-15-15;
- 292,100 FCFA / T, ie 50% subsidy rate for fertilizer NPK 15-10-10;
- 382,800 FCFA / T, ie 50% subsidy rate for fertilizer NPK 9-23-30;
- 331.200FCFA / T, ie 50% subsidy rate for fertilizer NPK 10-10-20;
- 352,400 FCFA / T, ie 50% subsidy rate for DAP fertilizer;
- 319.125FCFA / T, ie 50% subsidy rate for urea.
In many locations in the southern part of the country, the agro dealers that bought fertilizers from the Presidential Fertilizer Initiative has not ordered new trucks as they said the effort was not worth it. Prices were still currently capped at 5500 NGN at retail points allowing a margin of 500 NGN that becomes null if product is bought outside the blending state. As it is, 9 out of the 11 blending facilities are located in the northern part of the country. All urea to be sold must be registered with National Security Adviser (NSA) and approved a month before sales.
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International Fertilizer Prices through April 2017
Product (US$/ton, FOB bulk)
|Urea (granular, Arab Gulf)
|Urea (granular, Indonesia/Malaysia)
|Ammonium Sulphate (China)
|DAP (Baltic/Black Sea)
|SOP (€, North West Europe)
|NPK 16-16-16 (FSU)
Source: Argus FMB
A regional divide opened up in the urea market, with the two main areas of spot activity in the last week of April – China and Egypt – showing diverging trends. Buoyed by demand from Australia for May, Chinese granular urea prices edged up $1- 2/t, whereas growing stocks of unsold urea obliged Egyptian producers to cut prices to $195/t fob. Brazilian buying sunk to a low level because it was the dead-season. Price offers fell from $220/t cfr to $213/t cfr in the last week of April without prompting any buying and have fallen further in May. The US was waiting for application of urea to begin on corn and rice and demand there should strengthen during May, but competitive offers from US producers would cap any potential increase in prices. Sales in the last week of April in Nola were in the range $185- 190/t cfr equivalent. Lower prices for urea would pull some buyers into the market and have prompted some traders to cover short positions, but overall supply looked way above demand for May .
The market east of Suez stabilized, possibly heading north even now that Indian DAP demand was back in force. Total buying in the last week of April was around 350,000t of Moroccan, Russian, Chinese and Jordanian with tenders announced for another 640,000t. A further 150,000t of buying was imminent against existing inquiries. Demand in other parts of Asia also emerged. Vietnam tendered for DAP and TSP end of April and an inquiry for 10,000t was also floated in Indonesia. In Japan, Ma'aden sold 15,000t DAP for May loading. Paradoxically, with the east stabilizing, the west weakened. Brazilian MAP import demand remains lackluster prompting sellers to lower offers to around $370/t cfr with reports of sales as low as $363/t cfr, thought to be top off tonnes from a Russian vessel. The quantity was around 6,000t. OCP said it would cut output by 100,000t/month in May and June as it takes rolling maintenance. The EuroChem Lifosa facility would run at less than 50pc of capacity in May. JPMC was still out. In the US, Mosaic had to purchase another two phosphate rock vessels for May and June shipment as the Bayovar rock mine remained inundated with flooding.
European granular MOP prices narrowed at end of April to €255-260/t cfr, from €250-260/t the previous week, as demand persevered on limited supply. Brazil also seemed to have an unquenchable thirst for granular MOP. Prices edged up to $255-265/t cfr for May shipment. In contrast, US granular MOP prices dipped to $218- 225/st on limited demand. Southeast Asia prices for standard MOP were steady in the last week of April, at $238-260/t cfr, but interest was growing in the region. The period 15-25 May in Asia could set the price tone for the rest of the world, for the rest of the year. Malaysian, Bangladeshi and Indonesian tenders — particularly one from Petrokimia Gresik — were all expected to close in the period, and IFA's Marrakech conference on 22-24 May is still the most likely time and place for Chinese seaborne contract negotiations to conclude. Read more
West African Fertilizer Forum
On the 10th of May 2017, the West Africa Fertilizer Forum closed, a two-day meeting organized in Abidjan by the West African Fertilizer Association (WAFA) and Argus. During the conference, emphasis was placed on the low use of fertilizers in crops in West Africa and on the technological solutions available for better traceability and protection of fertilizers. In addition, discussions were held on the various constraints facing the distribution chain, such as policies that restrict or exclude competitive participation in the market, risks of credit related to suppliers, under-developed distribution networks and product markets, inadequate infrastructures at various points in the chain, high fertilizer costs and lack of market information.
For more information please download all the Forum’s presentations
The West African Fertilizer Association (WAFA)
The West African Fertilizer Association brings together the professionals in the fertilizer sector (importers, producers, processors, distributors) to have a common voice and action towards promoting rational efficiency of fertilizer in developing sustainable agriculture. The countries involved are all the countries members of ECOWAS. Their main objective is to promote access to quality and appropriate fertilizers among the farming population of West Africa. But also, engage authorities and policy makers in the development of regional agricultural policy in terms of agronomy, infrastructure, trade environment and financing with transparency in the overall interest of improving agriculture. More about The West African Fertilizer Association
2015-2020 Sub Saharan Fertilizer Market Outlook by Patrick HEFFER, IFA
During the West African Fertilizer Forum organized by the West African Fertilizer Association (WAFA) and Argus in Abidjan Côte d'Ivoire, Patrick HEFFER who is the Senior Director of Agriculture Service at the International Fertilizer Association (IFA) has been invited to present the forecast of Sub Saharan Fertilizer Market from 2015 to 2020. Click here to watch the video. (see above).