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December 2016 Edition

 

Welcome to December 2016 edition of FertiNews. Holidays are around the corner; we wish all our readers happy holidays. The holidays are a perfect time to remind you how much we appreciate being at your service. We hope you enjoy a wonderful season filled with traditions and people that are dear to you. We also remind you that the registration of the 8th Argus FMB Africa Fertilizer 2017 conference are ongoing. Start your online registration for the conference now.
As always, we appreciate the opportunity to serve you! Enjoy reading!

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Regional Fertilizer Retail Price Summary - November 2016

Commercial Market Prices (com) vs. Subsidized Prices (sub)
 
Product (US$/ton)
Type
BEN
BFA
CIV
GHA
MAL
NGA
SEN
NPK
15-15-15
com
395 570 532 564 555 455 442
sub
 
440   432   250 247
NPK
23-10-5
com
 
585   564  
 
 
sub
 
 
 
423
 
 
 
DAP
18-46-0
com
 
758     629   538
sub
 
 
 
 
 
 
 
Urea
46-0-0
com
395 544 516 531 492 475 534
sub
 
414   398   448  


 

Comments:
Bénin: There were no changes in the retail prices of fertilizers in Benin in November compared to October. The main fertilizers were: NPK 14 23 14 + 5S + 1B and urea for cotton
NPK 15 15 15; Urea and MOP for cereals (maize and rice)
 
Burkina Faso: Sales continued to fall from mid-October to mid-November. This situation was attributed to the end of the wet season marking the beginning of the harvest. However, urea, NPK 15-15-15 and NPK 14-23-14 remained the most purchased fertilizers during this period. The hopes of the retailers remain on the dry season. For almost all retailers, stocks available in stores will not be renewed before the dry season is launched.
 
Côte D’Ivoire: The general trend in sales volumes was down from October for NPK 15-15-15, urea and NPK 12-22-22. Sales were up for NPK 0-23-19 cocoa fertilizer and constant for Nitrabor. The fertilizer market slowed down in the northern zone. Producers were all in the cereal harvest stage. However, small quantities of fertilizers were sold for market gardening purposes. In the South, East and South-West zone, cocoa producers obtained purchasing power through the sale of cocoa beans. They launched their order for NPK 0-23-19 cocoa fertilizers from retailers. Given the low demand, some retailers stopped supplies of urea as was the case in Méagui.
 
Ghana: Officially, the fertilizer subsidy program for 2016 ended this month according to the ministry in charge of implementation. According to the agro-dealers, some of the participating companies had already withdrawn subsidies from their fertilizer products. Some agro-dealers stores have stocks of fertilizer products that will be sold at the beginning of the next growing season.
 
Mali: The general trend in sales volumes did not change compared to October in the commercial fertilizer market. The fertilizer market was calm and the volume of rare exchanges remained modest and mainly due to purchases of NPK 15-15-15 and urea in anticipation of the potato season (Sikasso region). Small quantities of fertilizers have also been mobilized for market gardening. The eyes of the retailers are focused on the period of January concerning the cultivation of the rice in off-season which should draw up the volume of the fertilizers purchased. The fertilizer importers began distributing the fertilizers ordered by the CMDT (Malian Textile Distribution Company) to their various representatives.   
 
Senegal: The fertilizer market continued to lose momentum in most of the agro-ecological zones of SENEGAL. This decline in intensity has always been linked to the end of the rainy season and to the maturity of crops in the majority of production areas. However, urea remained dominant in terms of sales volume.
 
Nigeria: The prices of Urea rose by 14% and against expectations. Blenders attributed this effect, among other things, to the dollar exchange rates on their gas purchase. For locations where the Anchor borrowing system was underway and the GES was skeletally conducted (12 states), the fertilizer found its way from the two free market schemes forcing prices down and close to production costs. NPK blends that were sold for around 10,000 NGN in October fell across the country, with fertilizer demand falling.
 
   

International Fertilizer Prices through November 2016

 

Product (US$/ton, FOB bulk)
Aug
'16
Sep
'16
Oct
'16
Nov
'16
Urea (granular, Arab Gulf) 187 187 198 226
Urea (granular, Indonesia/Malaysia) 205 201 205 224
Ammonium Sulphate (China) 102 98 95 96
DAP (Baltic/Black Sea) 341 333 325 311
MAP (Morocco) 343 344 344 342
TSP (Tunisia) 278 278 278 278
MOP (Israel) 225 227 224 223
SOP (€, North West Europe) 445 445 438 435
NPK 16-16-16 (FSU)  290 270 261 253


Source: Argus FMB
 
Comments:
Nitrogen: India poured cold water on the market during November bringing the run up prices to a halt. The third week of November’s euphoria subsided into the fourth week’s hangover in the urea market, proving again that the cure for high prices is high prices. The $40/t jump in prices sowed the seeds of its own demise in the Indian urea tender. Coupled with a troubling slump in sales in India, the price rise was sufficient to persuade the Indian government to scrap the STC tender and put 800,000t of urea back into suppliers’ hands. Although much of this urea would not find its way onto the open market, the move was sufficient to prompt a sharp reversal in prices in several countries, notably the US and Brazil. The US market appears short of urea for spring 2017 and will need to import substantially January-March. European and Turkish buyers also need to purchase for spring. With the exception of Iran, granular urea producers worldwide were well placed for December, having sold most of their output. Traders took long positions and had an interest in maintaining prices.

Phosphate: Chinese DAP prices remained firm in the face of near-nonexistent DAP demand, especially on the Indian subcontinent. Chinese producers remained defiant basis lower production rates, high production costs and some movement to the domestic market. There was no pressure currently to export. However, one of the pillars supporting the recent run up in prices had been heavy late-season demand in Pakistan, but that need had been satisfied with one additional sale reported the fourth week of November ex-Ma'aden to Engro at the prevailing $320/t cfr. With India still absent due to an increasingly complex set of circumstances - high stocks, an uncertain monsoon, a weakening rupee and a lack of farmer credit - Chinese prices might be high but there was nowhere on the planet these fob levels were workable.

Potash: The market remained steady in the fourth week of November with prices in major regions all unchanged, aside from a $2/t drop in the US. Demand continued to fall in Brazil and the US, and pricing in southeast Asia was complicated by fast-moving exchange rate fluctuations against the US dollar. In the fourth week of November, BPC signed a memorandum of co-operation to supply China state-owned CNOOC subsidiary CNCCC with 500,000 t/yr of potash for three years, starting next year. Prices were not discussed, and the agreement was more of a political statement than a firm contract. But the announcement comes at a time when supplier focus is already turning to 2017 contract negotiations with the Chinese consortium of buyers, which CNOOC is a part of. PotashCorp will cut MOP production across three smaller Saskatchewan mines in 2017 as the company adjusts to increased output at its expanded Rocanville facility. The company's 3.8mn t/yr Lanigan mine will enter a six-week production curtailment in January 2017, while the near-4mn t/yr Allan mine will go through a 12-week curtailment beginning in February 2017 ... Read more

 

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The World Most Expensive Fertilizer Market: Sub Saharan Africa
 

This article published in December 2016 provides an overview on the fertilizer market in Sub Saharan Africa and the reasons why it is the most expensive market in the world.  It is stated in a report made by the FAO’s World Fertilizer Outlook that of all world regions, sub-Saharan Africa will see the fastest growth in fertilizer demand. In order to satisfy this growing demand, public and private sectors need to invest in regional production and lower transportation cost. These investments will drive down the cost of fertilizers and increase its use. 

Click to read more
 



La Société FERTINAGRO

FERTINAGRO is the pioneer company in the manufacture of fertilizers in Spain. Through its commercial subsidiaries, FERTINAGRO is able to offer its goods and services on three continents: Europe, Africa and America. FERTINAGRO has 18 plants that produce about 2 million tons per year. Among its services, FERTINAGRO offers solutions to improve fertilizer mixes in West Africa such as:
  • DURA-U: to be mixed with urea preventing leaching and volatilization
  • MULTIPHOS RANGE: phosphates specific for acidic soils. pricewise efficient
  • DURA-P: to be mixed with phosphates, preventing lockup
  • BLENDCOAT: specific coating agents with highly effective humates 
Visit FERTINAGRO website
 

"Le Coq Chante": Intensive rice farming system in Bama, Burkina Faso


LE COQ CHANTE is an audio report produced by Sayouba Traoré on the use of intensive rice farming system in Burkina Faso, specifically in Bama. Through this report we learn that rice growers in the Bama region are satisfied with the system that allows them to double their harvest every year.
 
 


 

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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. 

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