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January 2017 Edition

 

Welcome to the January 2017 issue of FERTINEWS. We wish you all a Happy New Year 2017. The coming months will be marked by several important events for the fertilizer sector in West Africa. In February and March, two regional workshops will be devoted to regulatory issues (Dakar) and subsidies (Bamako) on fertilizers in the sub region. In May, Argus and WAFA will organize in Abidjan the fertilizer forum in West Africa. Register now online. For more information, please refer to the agenda below.
As always, we appreciate the opportunity to serve you! Enjoy reading!

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Regional Fertilizer Retail Price Summary - January 2017

Commercial Market Prices (com) vs. Subsidized Prices (sub)
 
Product (US$/ton)
Type
BEN
BFA
CIV
GHA
MAL
NGA
SEN
NPK
15-15-15
com
386 548 505 502 535 477 446
sub
 
429          
NPK
23-10-5
com
 
563   504  
 
 
sub
 
 
 
 
 
 
 
DAP
18-46-0
com
 
      604   525
sub
 
 
 
 
 
 
 
Urea
46-0-0
com
386 529 491 532 432 463 529
sub
 
404   398      


 

Comments:
Burkina Faso: Fertilizer sales kept falling from mid-December until early January. However, urea was the most purchased fertilizer during this period.
 
Côte D’Ivoire: The general trend of sales declined from mid-December to early January. However, the best-selling fertilizers remained NPK 0-23-19 and urea. In the North, fertilizer dealers maintained a low stock of urea due to ongoing purchases due to the installation of off-season market garden crops. Compared to the rainy season, the level of demand remained much lower. In the South, East and South-West zone, climate change resulted in poor rainfall, causing producers to purchase NPK 0-23-19 cocoa fertilizers. With the installation of coffee and cocoa nurseries in the last quarter of 2016, sourcing and purchasing of urea from fertilizer dealers is expected to intensify and continue over the next two months.
 
Ghana: Currently, there are few fertilizer stocks in agro- dealer shops across the country as most farmers have waited for the rains for the next farming season. Also, the fertilizer subsidy program for 2016 ended in November therefore fertilizer products available in the market are being sold at the commercial market price. Certainly, sales of fertilizers were very low except for NPK's being bought by vegetable farmers in irrigated areas.
 
Mali: In Mali, the fertilizer market was shy and urea remained the most marketed fertilizer, even though sales were low. The volume of transactions for NPK 16-26-12, NPK 15-15-15 are expected to rise from next month with the introduction of off-season rice.
 
Senegal: The fertilizer market continued to lose its momentum in most of the agro-ecological zones of SENEGAL and the low demands were mainly due to off-season crops. In the regions of Thiès, market gardens are farmed all year round. Thus, demand for urea, NPK 10-10-20 and NPK 6-20-10 remained high. In the groundnut basin, an area of cereal and groundnut crops, exclusively practiced during the rainy season, the demand for fertilizers has decreased considerably. In the area of the River Valley, sales of NPK 10-10-20 fertilizer were higher than the previous month. Demand for NPK 15-10 -10 and DAP, fertilizer for rice, declined significantly.
 
Nigeria: In December the price of urea remained stable but it was not the case with NPK 15 15 15. It became more expensive as most of the agriculture in the dry season begins with an initial application of NPK before application of the urea towards the harvest. Urea's price rose to around 8,000 NGN in January, due to the impact of transport costs on the price of the goods.

Read More Comments  (PDF)

Download Detailed Prices Bulletin per Market (Excel)



Start your online registration for the forum here
 

   

International Fertilizer Prices through December2016

 

Product (US$/ton, FOB bulk)
Sep
'16
Oct
'16
Nov
'16
Dec
'16
Urea (granular, Arab Gulf) 187 198 226 229
Urea (granular, Indonesia/Malaysia) 201 205 224 231
Ammonium Sulphate (China) 98 95 96 97
DAP (Baltic/Black Sea) 333 325 311 311
MAP (Morocco) 344 344 342 329
TSP (Tunisia) 278 278 278 278
MOP (Israel) 227 224 223 223
SOP (€, North West Europe) 445 438 435 435
NPK 16-16-16 (FSU) 270 261 253 248


Source: Argus FMB
 
Comments:
Nitrogen: Urea prices ended 2016 on a strong note and in some places at their highest level of the year. While the Christmas and New Year holiday slowed activity, the few sales that took place all saw increased prices and the outlook was optimistic for January. Granular urea supply was tight in Asia. Chinese exports shrunk to 330-340,000t/month in October and November and are unlikely to rise in Q1 2017. For calendar 2016, it is likely that Chinese urea exports fell by more than 5mn tons compared to 2015, doing much to bring supply and demand back into equilibrium. Reduced supply of prilled urea from Ukraine has tightened supply in the Black Sea and has obliged Turkish buyers to look at alternative sources. Iranian, Egyptian and, possibly, Baltic urea will move to cover requirements for January. Despite the current firm market, looking at average prices for the year as a whole, it is evident that 2016 was a disappointing time for the urea industry. Fob prices in the Arabian Gulf, Egypt and the US Gulf fell by about $80/t compared to 2015, averaging $206/t fob, $216/t fob and $206/st fob respectively. 2016 was the fourth successive year of falling prices.

Phosphate: Liquidity was scarce but prices stable-to-firm in a month dominated by announcements from MOSAIC which were set to impact the global phosphates market. In Europe, Moroccan and Russian producers were seeking to increase DAP prices but there were no new sales. In Latin America, sellers were attempting to hold prices as EUROCHEM reported new sales into Brazil. The US market continued its mild resurgence in the fourth week of December with MOSAIC reporting DAP sales at $305/st fob Nola but the heavy import line-up in January looked set to prevent prices from rising too high. The consensus from traders was that international prices were bottoming out as India remained quiet despite the subsidy rollover.

Potash: The market remained steady in the fourth week of December, leaving participants in no doubt that the period since August has been the most stable of the year. Few sales were reported in the last week in December, although indications were that suppliers are bullish heading into 2017, and will seek to capitalize on the price momentum over the past few months. Suppliers were targeting $245-250/t cfr for granular MOP in Brazil, and €245-255/t cfr for granular MOP in Europe from January. And North American producers raised offers to $265/st for Corn Belt in the US. But the $240/t cfr offers for standard MOP in southeast Asia did not appear to be rising at this stage. Buyers will resist the increases, particularly in some western European countries that suffered from poor crop yields and harvests. Expectations are for a quiet start to 2017. The market awaits the start of Chinese consortium negotiations, expected soon after Chinese New Year. Read more

 

 
AfDB – a Review of Effectiness of Agriculture Development Programs
 

AFDB has made the transformation of agriculture one of its five priorities. This development Effectiveness review published in 2016 is devoted to AFDB's agriculture portfolio and is organized in 3 parts:

  1. Overview on Africa’s recent progress on agriculture and some of the factors that are preventing it from realizing its potential.
  2. Presentation of AFDB’s strategy for African agriculture and description on their recent results across their portfolio.
  3. Discussion on their portfolio’s performance and description of future operations for AFDB’s agricultural work

Click here to download the full publication
 



Haifa Group

Haifa Group is an Israel-based multinational corporation and a global leading supplier of potassium nitrate for agriculture and industry, specialty plant nutrients and food phosphates. Its global operations span in over 100 countries across 5 continents with 12 subsidiaries and 3 production plants. One of His subsidiary is located in South Africa, serving the markets in RSA, Zimbabwe, Zambia and Mozambique. Haifa South Africa supplies water soluble fertilizers for various crops, and develops the application of controlled release fertilizers. Visit Haifa Group website
 

The Fertilizer Challenge in Africa


This video published in September 5, 2016 by AFRICANEWS, shows the challenge fertilizer's use face on the African continent. Its consumption represents barely a tenth of the world average consumption. Fertilizer costs too high in Africa, limiting its use to farmers. 65% of African soils are in poor condition; Soils whose loss of nutrients could cost the continent more than 4 billion dollars in loss of productivity. Sub-Saharan Africa still has 233 million people affected by hunger.
 
 


 

Connect With Us


Fertilizer News


Mali: (January 17th 2017) - IFDC has been implementing, since 2014, the Fertilizer Deep Placement Project (FDP) and the microdose on the millet and the sorghum (FDP-MD). The use of fertilizer, through Urea Deep Placement (UDP) and microdose maximizes the use of fertilizer, improves productivity and in this way the farmer gets more profit.  Read more

Nigeria: (January 25th 2017) - Nigeria will receive in the few coming days the first shipment of Moroccan fertilizers following the deal sealed lately during King Mohammed VI's visit to this African country… Read more


MORE NEWS




Up-Coming Events



Second Edition of the regional technical workshop to share experiences on the conditions for the implementation of ECOWAS, UEMOA and CILSS regulations on fertilizers
Date: 7-8 February 2017
Venue: Dakar, Sénégal
Organized by WAFP


 

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 !... Read more

 


Regional results and experience workshop on fertilizer subsidy programs in West Africa
Date: 21-22 February 2017
Venue: Bamako, Mali
Organized by WAFP


 


West Africa Fertilizer Forum
Date: 9-10 May 2018
Venue: Abidjan, Côte d'Ivoire
Organized by WAFA & Argus


The West Africa Fertilizer Forum, organized by WAFA and Argus, will bring together all links in the fertilizer supply chain in this region, as well as international producers, developers and investors. If you want to develop new relationships in the West African supply chain, click here to register - we will contact you as soon as 'Early Bird' registrations begin.
 
 


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.
Contact Us
IFDC (NWAFD)
PMB CT 284 Cantonments
Accra
Ghana
Tel: +233 560-027917/18
www.ifdc.org
Email: info@africafertilizer.org