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November 2016 Edition

 

Welcome to  November 2016 edition of FertiNews. In this edition, get to know more about the 8th Argus FMB Africa Fertilizer 2017 conference. Start your online registration for the conference now and get $200 discount off the conference rate. We are always happy to have you as our readers. Enjoy reading!

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Regional Fertilizer Retail Price Summary - October 2016

Commercial Market Prices (com) vs. Subsidized Prices (sub)
 
Product (US$/ton)
Type
BEN
BFA
CIV
GHA
MAL
NGA
SEN
TOG
NPK
15-15-15
com
 
585 543 593 574 440 471 472
sub
 
449   429 370 249 260 360
NPK
23-10-5
com
 
595   573  
 
 
 
sub
 
454
 
429
 
 
 
 
DAP
18-46-0
com
 
774     655   555  
sub
 
 
 
 
370
 
 
 
Urea
46-0-0
com
404
556 530 539 497 491 552 461
sub
 
423   404 370 223 269 360


 

Comments:
Benin: Prices of various fertilizers were sold for 12,000 FCFA / 50 kg bag.  The major fertilizers used were NPK 15-20-15 + 5S + 3.5MgO + 1.5Zn, NPK 14-23-14 + 5S + 1B and Urea.
Burkina Faso: Crops which were at the stage of maturity or even of harvests (maize sorghum, etc.) needed less fertilizer application. In Banfora, we witnessed a shortage of NPK 14-23-14 fertilizer due to delays in delivery, while NPK 23-10-5 was least supplied by fertilizer retailers because of its high cost as compared to other compound fertilizers. Local drought in some areas such as Nouna led to a decrease in demand for the NPK 15-15-15. Dealers have placed their hope on the dry season which should start in December for vegetable crops and in January for cereal crops.
Côte d’Ivoire: There was a low purchase level of cocoa fertilizers. However, the launch of the marketing campaign of cocoa announced in early October coupled with  the rising purchase price of the bean - from 1,000 FCFA to 1,100 FCFA / kg, were expected to boost the purchase of cocoa fertilizer. In the northern zone, the end of the planting season has seen a lull on the fertilizer market. Almost all cotton and cereal producers had already applied fertilizer to their farms and were waiting for the harvests. In some areas, cereal harvests have commenced on a small scale but these were expected to gain momentum in the coming weeks.
Mali: The end of the distribution of subsidized fertilizers was officially fixed at September 30. Thus, commercial fertilizers were dominating the market. Some shops were still selling some stock of subsidized fertilizer while others stopped selling for 2-3 weeks ago. Fertilizer Suppliers were also concerned about payment processes for subsidized fertilizer balances. On the other hand, the preparations for the cultivation of vegetables were underway, thus fertilizer purchases will definitely be geared towards vegetable production in the coming weeks.
Senegal: In all production areas, there was a decrease in fertilizer purchase due to the end of the rainy season. Despite the decline in demand, prices remained stable in all areas. In Kaolack and Kaffrine, there was a decrease in demand for peanut fertilizer NPK 6-20-10, millet fertilizer NPK 15-10-10, and NPK 15-15-15 because most crops were either at the stage of maturity or harvest for which lesser fertilizer application was required. The demand for Urea remained promising in these areas due to vegetable crops cultivation in some lowlands.
Togo: The Government of Togo decided to privatize the fertilizer sector from crop year 2016 while maintaining the fertilizer subsidy to 150,000 smallholder farmers. To do this, the government gave permission to 16 companies to import fertilizers in 2016; then it contracted 3 companies among the 16 authorized to deliver fertilizer to targeted smallholder farmers. These three companies are: Fredo vanos, Elisee cotrane SAU, and “technology distribution company" (STD Sarl).
Ghana: The month of October saw minimal sales of fertilizer products. This was due to the fact that the farming season was almost over for 2016, except for irrigated areas. The fertilizer subsidy programme for 2016, according to the Ministry of Food and Agriculture is expected to be over by the end of November, even though there are stocks of subsidized fertilizer in most shops. Most of the agro-dealers had adequate fertilizer stocks to last for the rest of the farming season for the year.
Nigeria: Farmers have begun sourcing fertilizers for irrigation farming. They believe they can get it at the current lowest on 8 months. The price of Urea has dipped from an all-time high of 10,000 NGN to between 6,500 NGN to 7,500 NGN in more than three quarters of the country except for pockets of Agro dealers that still had old stock.  Prices of NPK 15-15-15 maintained an average of 6,500 NGN in most states. In the 12 states that the national GES kicked off, prices of fertilizers have been pressured to come down and it remains to be seen how round tripping can affect other states.
 
   

International Fertilizer Prices through November 2016

 

Product (US$/ton, FOB bulk)
Jul
 '16
Aug
'16
Sep
'16
Oct
'16
Urea (granular, Arab Gulf) 176
187
187
198
Urea (granular, Indonesia/Malaysia)  206
205
201
205
Ammonium Sulphate (China)
105
102
98
95
DAP (Baltic/Black Sea)
337
341
333
325
MAP (Morocco)
343
343
344
344
TSP (Tunisia) 278 278
278
278
MOP (Israel) 223 225
227
224
SOP (€, North West Europe)
445
445 445
438
NPK 16-16-16 (FSU)
290
 290 270
261
Source: Argus FMB
 
Comments:
Nitrogen: Urea market maintained firm tone: having risen by $20-25/t since September, the question of whether urea prices would continue to firm came under scrutiny in discussions on the fringes of two industry conferences during the last week of October. The conclusion was that they probably will in the West, but there was less conviction about Chinese price levels firming further in the East. North African producers sold granular Urea at prices of $220- 222/t FOB in the last week of October for November and December shipment, up around $5/t from the previous week. In the East, attention was turning increasingly to the upcoming Indian tender, it was expected to be issued in the first week of November, as the next significant piece of demand. Chinese producers were asking $215-220/t FOB for prilled and granular urea. Some sales, including one Fudao cargo, were reported at $215/t FOB.  Low production levels and a strengthening domestic market were supporting prices in the export market.
Phosphate: The phosphates market drifted down in a vacuum of demand. India remained absent due to high stocks and a narrowed import window (it was Diwali during the first week of November, after which fresh DAP arrivals had perhaps less than two weeks to arrive in time for the current season). After this time, any new cargoes would go into storage, and no one was prepared to take a risk with stocks high and the subsidy uncertain. By contrast Pakistan continued to buy imported DAP with two more deals done the last week of October for Chinese and Australian material totalling 80,000t, bringing total imports to around 1.13 mnt. Normally this would be considered a very healthy level, but such volumes do not begin to offset the lack of Indian buying. At least prices were stable in the mid/high-$310s/t cfr. With Saudi product excluded and Chinese production running at low rates, perhaps buying options were thin.
Potash: The fertilizer markets met in Cannes and Singapore in late October, and potash suppliers have already started to muse on the timings of the next China MOP contract decisions. With many suppliers sold out for the fourth quarter, and the general consensus being that the period will be an improvement in terms of demand compared with the rest of the year, suppliers were looking towards 2017 with strong hopes of an early settlement driving stability and buying confidence... Read more

 

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Developing Competitive Fertilizer Markets in Africa

This report published in 2015 provides a synopsis of the status of fertilizer markets, key challenges and potential opportunities and highlights key policy recommendations needed at the continental, regional and national levels to create competitive and sustainable fertilizer markets and also increase farmers’ access to fertilizers. Click to download full publication
 

SQM Company
 
SQM is the world leading company in the production of soluble fertilizers for use in fertigation (drip, pivot, sprinkler etc.). In particular, it is the largest producer of potassium nitrate (1 million tons), which is the basic product of fertilizer irrigation. It also produces soluble NPK, potassium nitrate, and granulated NPK fertilizer for market gardening and fruit trees, potassium chloride (soluble, standard and granulated) and soluble potassium sulphate. The company is based in Chile and has several mines in the Atacama Desert in the Northern part of the country. It also has a logistics platform in Antwerp which serves all its customers in Africa. Visit SQM website

Sustained Effort by USAID WAFP Boosts Regulatory Environment for Quality Fertilizer Use in Ghana

In order to speedily bring the adoption process of ECOWAS Regulation C/REG.13/12/12 to fruition, the USAID West Africa Fertilizer Program (USAID WAFP) guided the Plant Protection and Regulatory Services Directorate (PPRSD) of the Ministry of Agriculture in preparing the cabinet memo for consideration by the Ghanaian Parliament...Click here to download the full publication

 

Prepaying fertilizers and seeds
 


In Mali, some farmers have started to gradually put aside small amount of money by buying special scratch cards in their local shops. The money is transferred to their personal account using a mobile phone and is assigned for seed, fertilizer and training advice.
 
 

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Fertilizer News


Cote d’Ivoire: (November 15, 2016) - Seventeen tons of fertilizer were granted to women's groups in the agricultural sector... Read more


Nigeria: (October 31, 2016) - AF&C company acquires Kano multi-billion naira fertilizer blending company... Read more

Nigeria: (October 28, 2016) - Women entrepreneurs trained on fertilizer use... Read more
 
 

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Up-Coming Events


 
Promoting Agriculture Technology To Improve Productivity And Net Returns For Smallholder Farmers
Date: 15-17 December 2016
Venue: Accra, Ghana
Organized by IFDC


IFDC is organizing a 5-day training that will help participants to know trends and challenges in the agricultural global market and show how farmers, agribusinesses, and policymakers are adjusting to them by using state-of-the-art information and technology available for today’s agriculture production... Read More


8th Argus FMB Africa Fertilizer  Conference
Date: 15-17 February 2016
Venue: Cape Town, South Africa
Organized by Argus FMB


Join a cross-section of stakeholders including government leaders, finance providers, NGOs, regional distributors and global producers to discuss on “Improving Access and Increasing Consumption of Fertilizer and Building Meaningful Supply Chain Partnerships in Africa”. Start your online registration for the conference now and get $200 off the conference rate... Read more

 
 


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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.

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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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