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September 2016 Edition

 

Dear readers, welcome to September 2016 edition of FertiNews, your monthly bulletin that delivers timely and quality information in the fertilizer industry. You can now download our detailed regional price bulletin and market comments. Also, in this edition, we present to you Fertilizer Subsidy Program Matrix in 8 West African countries: Burkina Faso, Benin, Cote d'Ivoire, Ghana, Mali, Nigeria, Senegal and Togo. Enjoy reading!


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Regional Fertilizer Retail Price Summary - August 2016

Commercial Market Prices (com) vs. Subsidized Prices (sub)
 
Product (US$/ton)
Type
BFA
CIV
GHA
MAL
NGA
SEN
NPK
15-15-15
com
586
536
569 575 483 456
sub
 
 
434 376 243 262
NPK
20-10-10
com
 
  500
 
459
 
sub
 
 
434
 
243
 
NPK
23-10-5
com
638
 
584
 
   
sub
 
 
434
 
 
 
Urea
46-0-0
com
565
516 534 511 523 539
sub
427
 
409 376 435 275


 

Comments:
Cote d’Ivoire: Demand increased especially for cotton fertilizer NPK 15-15-15+6S+1B and Urea. The period was appropriate to apply fertilizer on crops as rains began late this year in the Northern zone. Retailers who buy at ridiculous prices from cotton producers on parallel markets were very active during the period. In the cocoa sector, there was low demand for NPK 0-23-19. According to dealers, this was due to the fact that the first phase of fertilizer application to cocoa trees had ended and the second phase was scheduled for the month of September. However, demand for Urea remained at an average level in the area. 
Burkina Faso: A major incident that characterized Burkina Faso fertilizer market in the month of August was the general strike of the State’s IT professionals. This strike had negatively impacted the functioning of Burkina Faso customs services as imported goods were not able to enter the market. The consequence of this incident was a reported shortage of stock in most shops while some had signed huge commitments with their retailers and producers. However, after that incident, leaders of input traders association reassured farmers about the availability of fertilizers for the 2016-2017 crop year.
Mali: The fertilizer market was driven mainly by the distribution of subsidized fertilizer. However, commercial purchases were made by producers who were unable to access these fertilizers or those whose needs were not covered by the subsidy. Indeed many actors questioned the transparency in the management of the subsidized fertilizer. However, the general trend in sales volumes increased in August compared to that of July for commercial and subsidized NPK 15-15-15, subsidized DAP, commercial and subsidized NPK 14-18-18+6S+0.1B as well as commercial and subsidized Urea.
Senegal: The general trend in sales volume increased in August as compared to July for commercial NPK 6-20-10 and commercial Urea. However, a decrease in sales was observed for commercial and subsidized NPK 15-10-10, subsidized NPK 10-10-20 and subsidized NPK 15-15-15. In detail, increase in sales was recorded for commercial NPK 6-20-10 in Kaffrine (with a drop of 4% in the selling price), Kaolack and Koungueul. Also for commercial Urea in Dakar, Kaffrine (with an increase of 4% in the selling price), Kaolack (with an increase of 5% in the selling price) and Koungueul.
Nigeria: NPK fertilizer prices remained high in the Central and Southeastern part of Nigeria as a result of transportation costs. Transportation costs went high across Nigeria because of an over 70% hike in the price of petroleum motor spirit- PMS. In the Northern and Southwestern zones where blending factories are located, prices dropped to 6,500 NGN from 7,000 NGN. NPK 15-15-15 may also be faced out as a blanket blend after this wet season as a new policy wants the customization of blends per region based on soil mappings done by the Ministry of Agriculture.
Ghana: On average, commercial fertilizer prices reduced slightly in August as compared to the previous month. The lowest price sale for Urea was reported from Navrongo with 90 GHS/50kg bag and the highest in Mankessim- the Central Region of Ghana with 125 GHS/50kg bag. NPK 23-10-5 price was lowest on the market in Ho, selling for 110 GHS/50kg bag while the same product was sold in Navrongo for 120 GHS/50kg bag. In Mankessim, NPK 15-15-15 was sold as high as 130 GHS/50kg bag and as low as 85 GHS/50kg bag in Gwollu. On the other hand, subsidized fertilizer prices continued to dominate the markets with accredited companies expected to follow through with sales in both September and October till stocks are exhausted.
 
 
   

International Fertilizer Prices through August 2016

 

Product (US$/ton, FOB bulk)
May
'16
Jun
'16
Jul
 '16
Aug
'16
Urea (granular, Arab Gulf) 202
188
176
187
Urea (granular, Indonesia/Malaysia)  216
214
206
205
Ammonium Sulphate (China)
108
 105
105
102
DAP (Baltic/Black Sea)
329
329
337
341
MAP (Morocco)
348
345
343
343
TSP (Tunisia)  294  281
278
278
MOP (Israel)  232 228
223
225
SOP (€, North West Europe)
488
 452  445
445
NPK 16-16-16 (FSU)
315
 290  290
290
Source: Argus FMB
 
Comments:
Nitrogen: Tight supply continued to affect a few areas of the Urea market but as September was approaching, the turnaround season was ending and availability was expected to increase. In anticipation of this, prices begun to ease in the West. Both Brazil and the US saw slight falls in prices. Nola, the most volatile market, dropped about $10/st from its peak, while Brazilian cfr values moved down $2-3/t. US prices were equivalent to $181- 182/t FOB Middle East. One spot sale also took place in the Arabian Gulf during the last week of August in the low-$190s/t FOB. The cargo was likely to move to Southeast Asia.

Phosphate: The market continued to be divided between steady businesses West of Suez at stable prices in the East due to a lack of Indian buying activity. A major factor is the surging DAP stocks in the domestic region, as laid out in the recent FAI statistics. At the end of July 2016, Indian DAP stocks for April-July stood at 1.3mn t, around 400,000t higher than that in June. Add in subsidy uncertainty and falling prices and importers are reluctant to pull the trigger. This has pressured Chinese DAP FOB prices into the high-$320s/t FOB. In Pakistan, Fauji's backing, also believed to be of Chinese origin, would net back to the mid- $320s/t FOB at best. A turning point for this market could be the re-emergence of the Chinese domestic demand, of which an improvement has been noted. In Europe, Turkey seems to be another hotspot of activity. Jordan's JPMC confirmed it will ship around 90,000t of DAP to Turkey, possibly going up to 100,000t, during August. Between GCT and JPMC, Turkish demand looks to be comfortably met.
 
Potash: A quiet end of August allowed the market time to take stock of recent price moves in Brazil and the US, as well as a chance to gauge fourth-quarter potash demand. Prices were unchanged, although suppliers reported strong demand and tightening supply. Canpotex, APC and BPC all said they were sold out of MOP until at least October, with supply limited until the end of the year. Suppliers attributed the high demand to the China and India contract deals, as well as early purchasing for spring by European buyers, and solid demand in Brazil. Any tightness in supply is likely to be temporary though, and buyers in regions like Brazil and Southeast Asia said they were in no hurry to buy. It remains to be seen as to whether the market upwardly adjusts prices on the news of limited supplies... Read more
 

Click here to access Argus FMB's report on - Sub-Saharan Africa Fertilizers: Resources, Markets, and Logistics
 


Returns to fertilizer use: does it pay enough? Some new evidence from Sub-Saharan Africa

This article published in 2015 by Paris Dauphine University, explores the importance of fertilizer profitability. The findings in this article suggest that the low uptake of chemical fertilizers might have been driven by factors other than profitability, including insufficient supply of subsidized fertilizers to farmers in need. It also calls for increasing the availability of credit to farmers in order to encourage adoption of chemical fertilizers. Click to download full publication
 

  
Borealis
 
As one of the leading fertilizer producers in Europe, Borealis is helping make farming more efficient in order to feed more people and livestock. Borealis supplies over five million tons of fertilizers and nitrogen products each year via its Borealis L.A.T distribution network in Europe and through Rosier in Overseas Markets... Visit Borealis website 
 
 
 
The West Africa Fertilizer Subsidy Program Matrix (WAFSuProM)

USAID West Africa Fertilizer Program provides through analyses and matrices, evidence-based information for policy makers to make informed decisions leading to an improved policy enabling environment for private sector investments. The West Africa Fertilizer Subsidy Program Matrix (WAFSuProM) covers the design and administration of subsidy programs using various approaches and experiences from various implementations in West Africa. Some of the key characteristics of fertilizer subsidy programs that are highlighted in WAFSuProM include: institutions managing the programs, legislations backing the programs, geographical coverage, agricultural budget proportions covering programs, targeted actors, distribution quota and many others across West Africa countries...Click here to download the full publication

 

USAID West Africa Fertilizer Program (USAID WAFP)
 


The USAID West Africa Fertilizer Program is a USAID funded project launched in June 2012. It envisions a region where qualities fertilizer circulates freely and efficiently to reach every farmer to sustainably increase crop productivity. Learn more on the project in this video.
 
 

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Fertilizer News



Ghana: (11 September 2016) - The USAID West Africa Fertilizer Program (WAFP) in collaboration with ECOWAS organized a workshop on fertilizer financing in West Africa... Read more

Ghana: (20 August 2016) - President John Mahama has announced the establishment of a fertilizer plant in the Western part of the country... Read more
 
Nigeria: (25 August 2016) – Plateau Firm Partners will soon start the construction of a new fertilizer blending plant in Plateau State... Read more 

Nigeria: ( 17 August 2016) - The Chairman, House Committee on Agriculture, Mr. Mohammed Monguno said the House of Representatives has passed a bill to help in manufacturing, distribution and sale of fertilizers in order to regulate the production of adulterated fertilizers reaching farmers in the country... Read more
 

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Up-Coming Events


 
Africa Fertilizer Agribusiness 2016
Date: 10 – 12 October 2016
Venue: Dar es Salaam, Tanzania
Organized by AFAP in collaboration with CRU

Register online here and get 10% discount off the conference rate by using the discount code “AFRICA10”.

The event will focus on the role of fertilizers within African agribusiness and how the African agricultural industry can work with international partners to strengthen and improve its agricultural output... Read More
 


Argus Africa Fertilizer Directory- List now your business for free!
 
Argus is collaborating with IFDC to bring together the African Fertilizer Industry in the directory which will help companies from all over the world to interact and do business with Africa.

Click here to fill in this short registration form and add your company to the 800+ companies already listed!
 
About USAID WAFP
The West Africa Fertilizer Program is a five-year USAID-funded project that seeks sustainably improved agricultural productivity through increased regional availability and use of quality and appropriate fertilizer in West Africa. 

About AfricaFertilizer.org
AfricaFertilizer.org is a global initiative facilitating the exchange of information on soil fertility, fertilizers, and good agricultural practices in Africa.
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