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July 2017 Edition

 

Welcome to the July 2017 edition of the newsletter FERTINEWS!

July 2017 was marked by an important event for the fertilizer sector in West Africa. Over 250 participants and experts from different countries convened in Accra, Ghana from July 10th to 12th to take part in this major event, organized by CRU Events and the African Fertilizer Agribusiness Partnership (AFAP). Discussions were focused on how farmers could obtain the right fertilizer, at the right time and for the right price. You will also find in this edition a link to the Ghana, Nigeria & Sierra Leone FTWG Workshop Report.
Finally, the USAID-WAFP 5-year project is ending on July 31, 2017 and implementation of another USAID-funded regional fertilizer development project is being discussed.

As always, we are delighted to serve you! Good reading!


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Regional Fertilizer Retail Price Summary - June 2017

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
443 600 547 481 549 479 520 480
sub
  420   266 383   300 380
NPK
23-10-5
com
  580   496        
sub
      266        
DAP
18-46-0
com
        581   540  
sub
        383      
Urea
46-0-0
com
443 540 527 489 490 480 640 460
sub
  420   220 383     380


 

Comments:

BENIN During the month of July 2017 fertilizer retail prices in Benin remained the same. However, the government during the ministry council of July 12 decided to decrease prices of old stocks of fertilizer. From the explanation given by the government, this provision aims to encourage the utilization of fertilizer especially Kcl on palms. In this case the retail price of old stock of Kcl is 6000 FCFA per 50 Kg bag.

BURKINA FASO In Burkina Faso, agricultural activities continued in all regions but at different rates and stages due to the poor distribution of rainfall. As a consequence, movements in the fertilizer market have undergone this same disparate rhythm. Given the needs of producers, the subsidized fertilizer distributed was largely insufficient. However, AGRODIA, the national association of agricultural input distributors, reassured  farmers about the availability of large quantities of commercial fertilizers.

CÔTE D’IVOIRE The general trend of sales was up for urea, NPK 15-15-15 and NPK 12-22-22, and down for NPK 0-23-19. In the North, cereals and cotton  animated the fertilizer market. Cereal producers were active in Retailers' warehouses for their annual needs, unlike cotton producers who were awaiting the distribution of their allocations by the professional agricultural organizations that have already been supplied by the cotton industries to which they are linked. In the South, East and South-West zone, producers were supplied with more  fertilizer for cereals than for cocoa, whose fertilizer market slowed slightly. Retailers have all increased their turnover compared to last month because of the larger exchanges.

GHANA Fertilizers were available to farmers, both compound NPK and nitrogenous fertilizer, Urea and Ammonium sulphate in the 216 districts across the country.
The agro-dealers were satisfied with their sales as this month sales were better than last month. Prices remained unchanged compared to the previous month in relation to the commercial market.
Farmers are to pay 57.50 GHS for NPK and 47.50 GHS for Urea under the 2017 subsidy program.

MALI In Mali, fertilizer sales improved in June compared to the previous month. This is due to the early distribution of subsidized fertilizers by the government. Bond tickets, which are essential to acquire subsidized fertilizers, are still being distributed in the different sectors.
Fertilizer selling prices were stable compared to the previous month in most areas. However, there were exceptions in SEGOU, SIKASSO, DIOILA, NIONO and KITA where commercial prices for urea, DAP and NPK 15 15 15 increased compared to the previous months.

NIGERIA On the average, prices of Urea remained stable at 7500 NGN in the northern part of the country and 7000 NGN in the south at open market rates.
Indorama took steps to bag the UREA delivered to the Presidential Fertilizer Initiative-PFI differently from the bags sold in the market to ensure blenders under the PFI do not sell in the open market as this distorts price. The PFI can access Urea at 4500 NGN while the open market gets UREA at 6000 NGN at factory rates.

SENEGAL In Senegal, the onset of the rainy season has led producers to invest heavily in the planting of cereals and vegetables. As in previous years, there was a resumption of fertilizer sales at the end of June. The market should be even more dynamic during the month of July. Commercial fertilizers, particularly urea, NPK 10-10-20, NPK 6-20-10, NPK 15-15-15 and DAP are the best-selling.
Retailers are restocking particularly with  products from the Chemical Industries of Senegal (ICS) due to an omen of rising prices during the month of July.The distribution of fertilizers by the regional distribution commissions is still in progress. Most farmer organizations are still waiting to receive campaign funds for group purchases.

TOGO The retail price of fertilizers in Togo during the month of July 2017 was the same as that of June. The Director of  Mambo Commodities in July met with the Togolese Head of State in Lomé, after which he revealed the company's plans to increase its investment in fertilizer blending mainly for coffee, Cocoa and cotton.

 
   

International Fertilizer Prices through June 2017

 

Product (US$/ton, FOB bulk)
Mar
'17
Apr
'17
May
'17
Jun
'17
Urea (granular, Arab Gulf) 212 192 117 178
Urea (granular, Indonesia/Malaysia) 237 215 208 209
Ammonium Sulphate (China) 112 107 102 102
DAP (Baltic/Black Sea) 378 358 341 336
MAP (Morocco) 387 387 381 365
TSP (Tunisia) 283 283 283 283
MOP (Israel) 228 232 238 242
SOP (€, North West Europe) 435 435 435 435
NPK 16-16-16 (FSU) 271 268 262 251


Source: Argus FMB
 
Comments:
Nitrogen: Quiet market sees pressure building on prices: Holidays in the Muslim world contributed to one of the quieter weeks in the urea market. A few spot sales in Latin America accounted for most of the activity seen in the last week of June and low demand levels ensured that the outlook for prices remained bearish. Sales took place at lower prices as suppliers were more interested in looking for outlets for July cargoes. Mexican sales were covered by US re-exports, while South American business reflected the low-$180s/t fob Arabian Gulf.
India made no moves towards floating a new tender for urea, as the government was fully occupied with the 1 July introduction of a new general sales tax across the country and the tender will be held in second half July.

Phosphate: Indian phosphate producers begun to settle 2H 2017 phosphoric acid contracts with OCP, down $23/t P2O5 at $567/t P2O5 cfr. Major domestic DAP sellers began to increase their MRP of DAP effective 1st July due to the proposed hike in the GST to 12pc that was to come in to effect on 1 July. Indeed, there was considerable confusion as to the likely impact and indeed success of the GST's implementation/ It was observed that domestic producers had a distinct advantage over DAP importers due to the refund applicable as an input tax credit.
Elsewhere, in Pakistan, United Agro was confirmed as having bought an early July loader from Quantum/IPL Australia above $360/t cfr.  Chawla bought a DAP cargo from Quantum.
West of Suez the market remained in stasis. Prices were stable-to-soft with demand non-existent. Indagro offered its Moroccan vessel at around $375/t cfr in Argentina. Brazilian MAP cfr levels were weak at $355-365/t cfr basis bids and offers. Overall, the outlook was for a continued softening of prices east and west of Suez.

Potash: Eid festivities, a seasonally quiet period in Europe, and the expectation that China would settle its annual seaborne contracts in July caused a lull in the potash market. But demand for granular MOP in Brazil remained strong in June, and a raft of small tenders were expected to emerge when Indonesia and Malaysia returned to the market from 5 July.
Indian MOP buyers remain relaxed about contract talks. Last year's annual contract expired on 30 June, but more MOP will be delivered in July and the first half of August, reducing the need to settle from a supply perspective. Farmers in India experienced retail price increases from key buyers including IPL and Chambal. The price hike was expected to lead to a fall in MOP demand from farmers, according to one buyer.Read more

 

 
FTWG WORKSHOP REPORT  

For the past five (5) years IFDC, through AfricaFertilizer.org initiative and USAID West Africa Fertilizer Program , has been working with the CountrySTAT program of Food and Agriculture Organization of the United Nations (FAO) to produce and disseminate, reliable and up-to-date official statistics on fertilizer manufactured, imported, exported and consumed in countries within the West Africa Sub-region. 
In 2012, fertilizer technical working groups (FTWG) were established in 11 Sub-Saharan Africa countries, including Ghana and Nigeria. These working groups have been responsible for the review of the data and the presentation of tables of results of these statistics which will be later validated by the National Technical Working Group before publication. 
For the first time, the validation workshop was held for not only Ghana and Nigeria but also included Sierra Leone. The Workshop took place at Blue Royal Hotel, Larteh-Ghana on 14 and 15 June 2017.

Click on this link to download the final workshop report which also contains links to:
• CountrySTAT Output tables
• 2016 fertilizer summary tables
• 2015 fertilizer statistics overviews
• All presentations
• All pictures


 



CGIA SAS

CGIA SAS is the Authorized Retailer of CIPAM SA and SAPHYTO SA in Burkina Faso, based in Bobo Dioulasso. Created 3 years ago, CGIA SAS focuses on the marketing and wholesale, semi-wholesale and retail distribution of compound and simple fertilizers such as NPK, Urea, KCL and phytosanitary products and very soon seeds for the continuous development of Burkina Faso agriculture. CGIA SAS is also a member of the Regional Association of Fertilizer Professionals (WAFA).

PO Box: 01 BP 1420 Bobo-Dioulasso               Tel: +226 20 66 00 00.
Email: cgia.sas@gmail.com                           Web-site: Very soon


FERTILIZERS & THEIR EFFICIENT USE


This video is an IFA Webinar made by Dr. Harold F. Reetz, Jr of Reets Agronomics, LLC on efficient use of fertilizers and its importance on sustainable agriculture productivity.
 
 


 

Connect With Us


Fertilizer News


AfricaFertilizer.org: The website AfricaFertilizer.org has been updated and is ready for your viewing. AFO is a great tool to get updated on fertilizer statistics and fertilizer market intelligence…For more information click on this link

NIGERIA: (July 3rd 2017) - According to the Managing Director, Nigerian Sovereign Investment Authority, NSIA, Uche Orji, Nigerian farmers would not count fertilizer as one of their problems in the new farming season. This was because 12 of the 28 abandoned fertilizer blending plants in various locations in the country have since been fully reactivated and made functional by the investment agency…Read more

TOGO : (July 7th 2017) - Mambo Commodities (CIAT in Togo), which manufactures ternary fertilizers known as NPK, has announced the construction of a new plant … Read more

GHANA: (July 13th 2017) - At the West African Fertilizer and Agribusiness Conference held on July 10th to 12th, the Board Chairman of COCOBOD encouraged investors to take advantage of the gov't "one district, one factory" initiative to identify fertilizer needs of specific cocoa districts and set up factories to supply farmers with the requisite fertilizers and other inputs… Read more

GHANA: (July 19th 2017) - The government is to ensure the supply and distribution of fertilizers to cocoa farmers at a subsidized price of over 50 per cent of the commodity’s open market cost through public-private-partnership agreement … Read more

COTE D’IVOIRE: (July 20th 2017) - Through a partnership between the Mohammed VI Polytechnic University and the National Polytechnic Institute Félix Houphouet-Boigny (INP-HB), an experimental research farm will soon be set up in Côte d'Ivoire. This project will serve educational and demonstration purposes for improvements in agricultural performance in terms of the use of good practices related to fertilizers, improved seeds, saving water and irrigation while preserving the environment … Read more
 

USAID-WAFP: The United States Agency for International Development – West Africa Fertilizer Program’s Project (USAID-WAFP) is ending on July 31, 2017. The 5-year project was created to increase sustainable agricultural productivity through increased regional availability and use of low cost fertilizer. IFDC was the lead implementer, with additional technical support provided through the African Fertilizer and Agribusiness Partnership (AFAP), as well as local public and private sector institutions in the targeted countries.
Implementation of another USAID-funded regional fertilizer development project is being discussed.


MORE NEWS




Up-Coming Events



African Green Revolution Forum
Date: September 4– 8 2017
Venue: Abidjan, Côte d'Ivoire
International Conference Organized by AGRA

This year’s AGRF is co-hosted with the government of Cote d’Ivoire and is being held for the first time in Francophone West Africa.
An expected 750 delegates, sponsors and speakers including heads of state, development partners, academia, investors, business leaders will share their insights on how to align, create and leverage financial, technical, policy and market expanding resources to develop game-changing and inclusive agribusiness models for Africa to counter the major challenges facing the agriculture sector on the continent.
Click here to register


Phosphate Fertilizer Production Technology Markets
Date: October 2 – 6 2017
Venue: Marrakesh, Morocco
International Training Organized by IFDC & IFA

IFDC  is organizing a five-day training course for engineers working in the fertilizer industry, especially those who have recently taken on new responsibilities, to renew or increase their technical knowledge in the production of phosphate fertilizers and to make engineers familiar with the best production processes available in the industry. Previous workshops have also attracted other fertilizer industry experts, such as senior managers, senior managers, and those involved in the environmental and research fields, who all found the program useful. Entrepreneurs also benefited from the program. Click here to join


East Africa Fertilizer Agribusiness 2017
Date: October 9 – 11 2017
Venue: Maputo, Mozambique
International Conference Organized by CRU & AFAP

ESAFA, The East and Southern Africa Fertilizer Agribusiness Conference is the latest special collaboration between CRU Events and The African Fertilizer and Agribusiness Partnership (AFAP). A packed three-day conference sessions centered on how partnership, investment and innovation can boost fertilizer trade and allow agribusiness to flourish in this region. It promises the opportunity to gain first-hand understanding of the challenges and opportunities and unrivalled access to high-level, hard to reach decision makers.
Click here to join


Africa Agri Forum
Date: October 18 – 19 2017
Venue: Abidjan, Côte d’Ivoire
International Conference Organized by I-conference / OCP

Entitled "Agricultural Development Plans: The Winning Approach", the Africa Agri Forum 2017 will be an opportunity to draw up a review of agricultural plans launched in several African countries with a focus on successes and areas for improvement.
Following the success of the previous edition, which involved more than 350 key actors in the agricultural sector, AAF 2017 promises to attract more attention of decision-makers of the sector in the region with the objective of promoting an agriculture which meets the aspirations of the African population.
Click here to join
 

Improving Fertilizer Quality for Highly Productive Agriculture and Balanced Nutrition
Date: November 6 – 10 2017
Venue: Arusha, Tanzania
International Conference Organized by IFDC

IFDC offers a 5-day training program that covers all the scientific aspects needed for the conduction of a fertilizer quality assessment. The program will include formal instruction covering theoretical and practical aspects of fertilizer quality and hands-on practice of methodologies in commercial fertilizer warehouses. Interactive discussion involving the technical leaders and participants from diverse backgrounds (e.g., agricultural researchers, fertilizer manufacturers, agricultural producers, government officials, etc.) will be integral parts of the program to ensure that specific interests of the participants are covered.
Click here to join
 
 
 
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