south african fertilizers market analysis report 2018webapps.daff.gov.za/amisadmin/upload/south...

SOUTH AFRICAN FERTILIZERS MARKET ANALYSIS REPORT

2018

Directorate Marketing Tel: 012 319 8455 Private Bag X 15 Fax: 012 319 8131 Arcadia E-mail:[email protected] 0007 www.daff.gov.za

2

TABLE OF CONTENTS

1. DESCRIPTION OF THE INDUSTRY ............................................................................................... 4

2. GLOBAL FERTILISER PRODUCTION AND CONSUMPTION ...................................................... 4

3. MANUFACTURING OF FERTILIZER ............................................................................................. 6

5. LOCAL FERTILIZER PRICES VS INTERNATIONAL FERTILIZER PRICES ............................... 11

6. EXPORT VOLUMES OF FERTILIZERS ....................................................................................... 12

6.1 LIMESTONE AMMONIUM NITRATE (LAN) ..................................................................................... 12 6.2 MONO-AMMONIUM PHOSPHATE (MAP) ...................................................................................... 14 6.3 NITROGEN, PHOSPHORUS AND POTASSIUM (NPK) ...................................................................... 16 6.4 POTASSIUM CHLORIDE ............................................................................................................. 18 6.5 POTASSIUM SULPHATE ............................................................................................................. 20 6.6 SUPERPHOSPHATE ................................................................................................................... 22

7. IMPORT VOLUMES OF FERTILIZERS ........................................................................................ 24

7.1 UREA ...................................................................................................................................... 24 7.2 LIMESTONE AMMONIUM NITRATE (LAN) ..................................................................................... 25 7.3 MONO-AMMONIUM PHOSPHATE (MAP) ...................................................................................... 27 7.4 POTASSIUM SULPHATE ............................................................................................................. 29 7.5 POTASSIUM CHLORIDE ............................................................................................................. 31 7.6 SUPERPHOSPHATE ................................................................................................................... 33

8. SWOT ANALYSIS (STRENGTHS, WEAKNESSES, OPPORTUNITIES, THREATS) .................. 35

9. ROLE PLAYERS IN THE FERTILZER INDUSTRY ...................................................................... 36

10. ACKNOWLEDGEMENTS ......................................................................................................... 37

List of figures Figure 1: Global consumption of fertilizers, 2006 - 2015 ......................................................................................... 5 Figure 2: Fertilizer consumption in South Africa, 2006 - 2016 ................................................................................ 6 Figure 3: Phosphate fertilizer manufacturing process ............................................................................................. 7 Figure 4: Nitrogen fertilizer manufacturing process ................................................................................................. 8 Figure 5: Potash fertilizer manufacturing process ................................................................................................. 10 Figure 6: South African fertilizer prices, 2007 - 2016 ............................................................................................ 11

Figure 7: Export volumes of LAN fertilizer to the world, 2007 - 2016 .................................................................... 13 Figure 8: Export volumes of LAN fertilizer to SADC (excluding SACU) ................................................................ 14 Figure 9: Export volumes of Mono-Ammonium Phosphate (MAP) to the world, 2007 - 2016 ............................... 15 Figure 10: Volumes of Mono-Ammonium Phosphate (MAP) exports to African regions and countries, 2007 - 2016 .............................................................................................................................................................................. 16 Figure 11: Export volumes of Nitrogen, Phosphorus and Potassium (NPK) fertilizer to the world, 2007 - 2016 ... 17 Figure 12: Volume of NPK exports to SADC, SACU and its member states, 2007 - 2016 ................................... 18 Figure 13: Export volumes of Potassium Chloride to the world, 2007 - 2016........................................................ 19 Figure 14: Export volumes of KCL fertilizer to SADC, SACU and member states, 2007 - 2016 ........................... 20 Figure 15: Export volumes of Potassium Sulphate to the world, 2007 - 2016 ....................................................... 21 Figure 16: Export volumes of Potassium Sulphate to SADC and member states, 2007 - 2016 ............................ 22 Figure 17: Export volumes of Superphosphate to the world, 2007 - 2016 ............................................................ 23 Figure 18: Export volumes of Superphosphate to SADC and SACU, 2007 - 2016 ............................................... 23 Figure 19: Import volumes of Urea fertilizers from the world, 2007 - 2016............................................................ 24

3

Figure 20: Import volumes of Urea fertilizers from Western Asia, 2007 - 2016 ..................................................... 25 Figure 21: Import volumes of LAN fertilizers from the world, 2007 - 2016 ............................................................ 26 Figure 22: Import volumes of LAN from EU and Eastern Europe, 2007 - 2016 .................................................... 27 Figure 23: Import volumes of MAP fertilizer from the world, 2007 - 2016 ............................................................. 28 Figure 24: Import volumes of MAP fertilizer from Europe, 2007 - 2016 ................................................................ 28 Figure 25: Import volumes of Potassium Sulphate from the world, 2007 - 2016 ................................................... 30 Figure 26: Import volumes of Potassium Sulphate from EU, South America and Eastern Asia countries, 2007 - 2016 ...................................................................................................................................................................... 31 Figure 27: Import volumes of Potassium Chloride from the world, 2007 - 2016 .................................................... 32 Figure 28: Import volumes of Potassium Chloride from South America, EU and Western Asia countries, 2007 - 2016 ...................................................................................................................................................................... 33 Figure 29: Import volumes of Superphosphate from the world, 2007 - 2016 ........................................................ 34 Figure 30: Import volumes of Superphosphate from Asian regions and member countries, 2007 - 2016 ............. 35

4

1. DESCRIPTION OF THE INDUSTRY

Fertilizer consumption in South Africa represents about 0.5% of the total global consumption and as such

the local fertilizer industry is a price taker. For this reason it is important to study the international fertilizer

supply and demand balances and other factors which influence this market as they have a direct impact

on the domestic market. The South African fertilizer industry is fully exposed to world market forces and

operates in a totally deregulated environment with no import tariffs or government sponsored support

measures. In this deregulated market environment, fertilizer prices are strongly influenced by international

prices, currency exchange rates (R/US$) and shipping costs. Farm gate prices of fertilizer evidently

include the cost of distribution, intermediate storage and packaging.

Maize accounts for 41% of total fertilizer application while the second largest fertilizer consumer is sugar

cane at 18%. The horticultural and fruit crop sectors account for 20 percent of fertilizer consumption but

their contribution to the total value of crop production is much greater. The South African fertilizer market

is very competitive, with a handful of national and regional operators. Competition is driven through price

incentives, product differentiation and specialized services such as individual agronomic advice, custom

blending and application. South Africa is a net importer of fertilizers. All of our potassium, as well as 60%

to 70% of our nitrogen requirements are imported. This means that the local prices would be subjected

to the same supply and demand drivers as in the international industry. Local prices are therefore also

influenced by the shipping costs and the rand/dollar exchange rate. Most of the international fertilizer

prices (dollar per ton) increased on an annual basis and due to the significant depreciation of the

exchange rate international fertilizer prices increase even more.

2. GLOBAL FERTILISER PRODUCTION AND CONSUMPTION

Table 1 below presents the top-ten fertilizer producers in the world during 2017, with China occupying

the top spot with approximately 55 million tons while Russia occupied the tenth spot with 18 million tons.

Table 1: Global fertilizer production rankings - 2017

Rank Country Tons (thousands)

1 China 55 976

2 Russia 18 684

3 India 17 936

4 United States of America 14 880

5

Rank Country Tons (thousands)

5 Canada 14 730

6 Belarus 7 378

7 Indonesia 4 166

8 Morocco 4 032

9 Saudi Arabia 3 930

10 Pakistan 3 797

Source: IFADATA, 2017

Figure 1 below shows the global consumption of fertilizers based on the three major nutrients namely,

Nitrogen (N), Phosphorus (P) and Potassium (K) between 2007 and 2016 marketing seasons.

Figure 1: Global consumption of fertilizers, 2007 - 2016

Source: IFADATA, 2017

It is quite clear from the Figure 1 above that, generally fertilizer consumption increased marginally over

the period between 2007 and 2016. The demand for nitrogen fertilizers was high over the past ten years

under review, followed by potassium and phosphorus respectively. The figure also shows that global

consumption of nitrogen fertilizer consistently increased from 2007 except for a slight decline in 2008 to

approximately 97 million tons. In 2016, the demand for nitrogen fertilizer increased slightly by 1.4% and

peaked at approximately 105.3 million tons in 2016. Globally, the demand for phosphorus and potassium

fertilizers was very low compared to Nitrogen during the ten year period under review and not more than

50 million tons per annum. Nitrogen-based fertilizers are the most used for crop production. The

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

N 94814 89956 95711 96978 100526 101194 104081 102488 103895 105334,1

P 39420 34710 39902 42420 42917 43690 44998 45897 46533 44732,6

K 28115 23499 22592 28191 29039 29588 31553 33549 33741 35707,8

0

20000

40000

60000

80000

100000

120000

Vo

lum

e in

to

ns

Years

6

international price of nitrogen fertilizer automatically went up because of high demand for the product.

During the same period, the price of phosphorus and potassium fertilizers declined substantially due to

very low demand globally.

3. SOUTH AFRICAN FERTILISER CONSUMPTION

The utilisation of fertilisers in South Africa between 2007 and 2016 is depicted in Figure 2 below.

Figure 2: Fertilizer consumption in South Africa, 2006 - 2016

Source: FERTASA

It is quite clear from Figure 2 above that nitrogen fertilizers were stable and the mostly used fertilizers

throughout the period under review, followed by potassium and phosphorus. The figure also shows that

South Africa’s consumption of fertilizer was relatively stable during the period under review. In 2009, the

demand for fertilizer increased significantly until a peak was attained at approximately 450 000 tons.

Domestically, the demand for phosphorus and potassium fertilizers was very low during the ten year

period under review and remained on average at 100 000 tons per annum. During 2016 season,

consumption volumes for NPK fertilizers increased slightly. Nitrogen declined by 7% while both potassium

and phosphorus declined by 4.5% and 5.2% respectively.

3. MANUFACTURING OF FERTILIZER

The phosphate fertiliser manufacturing process is depicted in Figure 3 below.

0

50000

100000

150000

200000

250000

300000

350000

400000

450000

500000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Qu

nat

itie

s (T

on

s)

N P K

7

Figure 3: Phosphate fertilizer manufacturing process

Phosphate Rock Mine

Phosphate Rock

Production of Phosphoric Acid

Phosphoric acid

Production of Final products Ammonia

DAP, MAP, SSP, TSP, FEED AND OTHER PHOSPHATES

The manufacturing process of phosphate fertilizers involves different ingredients. In this process, first

stage shows that phosphate fertilizer is from phosphate mine that transforms it into phosphate rock which

is then mixed with phosphoric acid and ammonia salts and gas and as a result, a complete product

becomes phosphate fertilizer that is used in the production of food crops such as maize. The nitrogen

fertiliser manufacturing process is depicted in Figure 4 below.

Sulphuric Acid

8

Figure 4: Nitrogen fertilizer manufacturing process

Process flow

In this process, natural gas and steam are pumped into a large vessel. Next, air is pumped into the system, and oxygen is removed by the burning of natural gas

and steam. This leaves primarily nitrogen, hydrogen, and carbon dioxide. The carbon dioxide is removed and ammonia is produced by introducing an electric

current into the system. Any impurities are removed from the ammonia, and it is stored in tanks until it is further processed. While ammonia itself is sometimes

used as a fertilizer, it is often converted to other substances for ease of handling. Nitric acid is produced by first mixing ammonia and air in a tank. In the presence

of a catalyst, a reaction occurs which converts the ammonia to nitric oxide. The nitric oxide is further reacted in the presence of water to produce nitric acid. Nitric

acid and ammonia are used to make ammonium nitrate. This material is a good fertilizer component because it has a high concentration of nitrogen. The two

Natural Gas

Air

Anhydrous

Ammonia

Am

Nitrate

UAN

Solution

Urea

O2 Nitric

Acid

Urea

Liquid Am

Nitrate

UAN Blending

Granulation

CO2

9

materials are mixed together in a tank and a neutralization reaction occurs, producing ammonium nitrate. This material can then be stored until it is ready to be

granulated and blended with the other fertilizer components. The potash fertiliser manufacturing process is depicted in Figure 5 below.

10

Figure 5: Potash fertilizer manufacturing process

Process flow

Wet potash concentrate

Fines

Dry concentrate

Soluble or Industrial Granular Standard

Solid or Liquid Fertilizer Solid fertilizer Solid fertilizer industrial

Figure 5 above indicates the manufacturing process of different types of potash fertilizers and stages /

phases of manufacturing. The figure further indicates that potash fertilizer is manufactured from ore from

the mines and it is then reduced in size before removing the clay content. The next stage is to separate

potash from salts and wet potash concentrate becomes clear. The watering and drying phase takes place

in preparation for the final stages of different types of potash fertilizer. The next stage of manufacturing

is sizing, compaction and crystallization of the primary product which leads to either soluble or industrial

(solid/ liquid) fertilizer, granular (solid) fertilizer or standard fertiliser.

4. FERTILIZER MARKET AND PRICING

Figure 6 shows average fertilizer prices in South Africa for the period under scrutiny (2008 to 2017).

Prices of all fertilizers experienced a significant drop of prices during 2009 season. Average fertilizer

prices of Mono-Ammonium Phosphate (MAP) dominated over the past eight years attaining a peak in

2008 at approximately R13 188.00 per ton. Although there was a sharp decline in average fertilizer prices

of MAP in 2009, positive trends were observed again between 2010 and 2015 to price levels of

Compaction

Ore from mine

Dewatering &

Drying Sizing

Crystallization

Size Reduction Flotation to Separate

Potash from Salt Remove Clay

11

approximately R9 564.80 per ton. This represented 19.5% increase in prices of MAP between 2014 and

2015. Over the past two years, prices of MAP, LAN, Urea and KCL declined slightly by 11%, 12%, 17%

and 15% respectively. Potassium Chloride average prices attained a peak in 2009 at approximately R9

614.00. Prices of Potassium Chloride have been fairly stable between 2012 and 2017, maintaining an

average of R6 852.66 per ton. The average prices of Urea (46) and Limestone Ammonium Nitrate (LAN)

attained their peaks also in 2008 at approximately R7 408.00. Generally, it is evident from the figure

below that between 2010 and 2015, average prices of fertilizers in South Africa increased although at

slow increasing trends. In 2008, farmers had to deal with high average prices which had an impact on

production and farm income.

Figure 6: South African fertilizer prices, 2008 - 2017

Source: GrainSA

5. LOCAL FERTILIZER PRICES VS INTERNATIONAL FERTILIZER PRICES

Tables 2 and 3 below show the relationships between local and international fertilizer prices. It can be

observed from the tables that there exists symmetric price transmission between local prices and

international prices. This mainly due to the fact that domestic prices responded positively to changes in

the international fertilizer prices over the past two years. The tables also show that there is a price gap

between local and international fertilizer prices and this could be largely due to fluctuations in the

exchange rate between the rand and other currencies globally.

Table 2: Local fertilizer prices in Rand terms

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

MAP 13188 5595 6337 7251 7646 7739 8003 9564 9271 8495

LAN 5329 3606 3494 4462 4807 5254 5398 5474 5358 4797

Urea 7407 4912 4381 5640 6172 6181 6258 6310 5834 5269

Potassium Chloride 9543 9614 5924 5988 6827 7048 6784 7286 7005 6166

0

2000

4000

6000

8000

10000

12000

14000

Ave

rage

pric

e (R

/T)

Years

12

Fertilizers July 2017

R/ton

July 2018

R/ton

% CHANGE

LAN (28) 4 797 5 635 17.5

Urea(46) 5 269 5 829 10.6

MAP 8 49 9 196 8.3

Potassium chloride 6 166 6 940 12.5 Source: GrainSA

* Estimated Import parity price (thus the c.i.f. import price plus tariff and transport cost to the purchaser's location)

Table 3: International fertilizer prices in Rand terms

Fertilizers July 2017

R/ton

July 2018

R/ton

% CHANGE

Ammonia 3 246 3 599 10.9

Urea(46) 2 416 3 227 33.6

DAP 4 487 5 498 22.5

Potassium chloride 2 926 3 320 13.5

Source: Grain SA * FOB per ton (Rand)

6. EXPORT VOLUMES OF FERTILIZERS

6.1 Limestone Ammonium Nitrate (LAN)

Export volumes of limestone ammonium nitrate (LAN) fertilizers from South Africa to the world during the

past ten years are shown in Figure 7. The most important South African LAN destination during the period

under review remains Africa. Almost all of the export volumes of LAN from South Africa to the world went

to Africa followed by minimal exports to the Americas, Europe, Oceania and Asia. It is worth noting that

export of LAN to various regions of the world has been unstable during the past ten years. Export volumes

of LAN to Africa attained a peak in 2009 at approximately 37 022 tons followed by a 62% decrease in

2010. In 2012, exports of LAN to Africa reached its lowest point at approximately 896 tons. There was a

544% increase in export volumes of LAN from South Africa to Africa in 2014 as compared to 2013

marketing season. During 2017, the LAN exports also increased by 83% when compared to 2016 season.

13

Figure 7: Export volumes of LAN fertilizer to the world, 2008 - 2017

Source: Quantec EasyData

Figure 8 indicates export volumes of limestone ammonium nitrate (LAN) fertilizer to Africa particularly the

SADC region over the past decade. The major export market for LAN fertilizer to SADC was Malawi,

followed by Zimbabwe during most part of the past decade. Export volumes of LAN fertilizer from South

Africa to Zimbabwe attained a peak in 2009 at approximately 17 896 tons. During the second half of the

ten year period, export volumes of LAN fertilizer were from a low base reaching a maximum of 5 128

tons. In 2008, there were no export volumes of LAN fertilizer to Zimbabwe. Malawi surpassed Zimbabwe

as the top importer of LAN in 2008, which was before Zimbabwe reclaimed in top position in 2009. There

was a 1 300% increase in export volumes of LAN fertilizer to Zimbabwe in 2014 as compared to 2013.

During the past four years, Malawi has been the top market for South African LAN fertilizers, accounting

for 38% of South African total LAN exports to SADC (14 906 tons) in 2017.

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

World 3855 37688 14478 3330 944 1610 8242 11336 17774 14906

Africa 3825 37022 13938 3330 896 1610 8242 9733 17774 14906

Americas 0 598 540 0 0 0 0 0 0 0

Asia 30 0 0 0 0 0 0 0 0 0

Europe 0 68 0 0 0 0 0 1603 0 0

Oceania 0 0 0 0 48 0 0 0 0 0

0

5000

10000

15000

20000

25000

30000

35000

40000V

olu

me

in T

on

s

Years

14

Figure 8: Export volumes of LAN fertilizer to SADC (excluding SACU)


6.2 Mono-Ammonium Phosphate (MAP)

Figure 9 represents export volumes of Mono-Ammonium Phosphate (MAP) fertilizer to the world between

2008 and 2017 marketing seasons. During the past decade, exports of MAP significantly unstable. The

major export market for MAP fertilizer during the past decade was mainly Africa, followed by Americas

and Oceania over the past decade. During 2017, all MAP exports were desrtined to the African and

Americas continent. Export volumes of MAP fertilizer from South Africa to Africa attained a peak in 2015

at 60 654 tons, while export volumes of MAP fertilizers to Americas attained a peak in 2017 at

approximately 60 765 tons. Export volumes of MAP fertilizer from South Africa to Oceania attained a

peak in 2012 at approximately 17 926 tons. In 2017, export to Africa fell significantly from 41 856 tons to

35 811 tons, a 31% decline when compared to 2015 season. There was an increase of

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Africa 3825 37022 13938 3330 896 1610 8242 9733 17774 14906

SADC (excluding SACU) 3824 37013 11182 2637 258 1245 8016 9368 17410 14726

Angola 5 6 0 67 140 93 48 72 134 4

Democratic Republic of Congo 66 235 34 19 34 0 9 24 2018 9

Mauritius 0 190 0 0 0 0 0 0 0 0

Malawi 1080 12303 5356 2078 0 92 6185 7160 9404 5709

Mozambique 0 4303 0 9 54 0 62 1 84 5

Zambia 2673 2081 698 433 29 1028 1264 36 1931 597

Zimbabwe 0 17896 5094 31 1 32 448 2075 3839 8402

0

5000

10000

15000

20000

25000

30000

35000

40000V

olu

me

in T

on

s

Years

15

Figure 9: Export volumes of Mono-Ammonium Phosphate (MAP) to the world, 2008 - 2017


Export volumes of Mono-Ammonium Phosphate (MAP) fertilizer to Africa are depicted in Figure 10. Over

the past decade, exports of MAP have been exported mainly to SADC region. Volumes of MAP fertilizer

exports from South Africa to SADC went mainly to Zimbabwe and by Zambia during the period under

observation. Volumes to Zambia were from a high based during the second half (2013-2017) of the ten

year period attaining a peak in 2013 at approximately 31 756 tons. Other notable importers over the past

ten years are Malawi and Mauritius. The countries had very low or minimal volumes of MAP fertilizer of

not more than 10 000 tons per annum over the past ten years. It is also clear from the figure that there

was a 13% decrease in export volumes of MAP fertilizer from South Africa to SADC and Zambia in 2017

as compared to the 2016 marketing season. Exports to SACU decreased significantly by 45% in 2017

when compared to 2016 season.

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

World 77537 32729 30851 77562 52754 87878 46586 93663 41856 96576

Africa 57537 12671 19839 20080 13219 46820 46586 60663 41856 35811

Americas 0 20034 0 57482 21609 25005 0 33000 0 60765

Asia 20000 0 0 0 0 0 0 0 0 0

Oceania 0 24 11012 0 17926 16053 0 0 0 0

0

20000

40000

60000

80000

100000

120000V

olu

me

in T

on

s

Years

16

Figure 10: Volumes of Mono-Ammonium Phosphate (MAP) exports to African regions and countries, 2008 - 2017


6.3 Nitrogen, Phosphorus and Potassium (NPK)

Figure 11 presents export volumes of Nitrogen, Phosphorus and Potassium (NPK) fertilizers to the world

between 2008 and 2017 marketing seasons. It is clear from the figure 10 below that exports of NPK have

been declining eight years. Most of the exports of NPK fertilizers to the world went to Africa, followed by

minimal export volumes of NPK fertilizers to the Americas, Asia, Europe and Oceania over the past ten

years. Export volumes of NPK to Africa were from a high base during the first half of the ten year period

(2008-2017) attaining a peak in 2008 at approximately 201 700 tons. There was 37% increase in export

volumes of NPK fertilizers to Africa in 2017 as compared to 2016 and a fall of 71% in export volumes of

NPK fertilizers to Africa in 2017 compared to 2008.

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017


Zambia 44 5495 5862 4151 9839 31772 27095 30691 20879 5621

Zimbabwe 11674 5574 13101 4719 2404 12332 17879 28868 19366 29169

SACU (Excluding RSA) 0 0 113 119 35 720 804 959 1302 717

Namibia 0 0 6 50 1 652 771 505 760 537

Swaziland 0 0 107 35 1 0 0 445 514 179

0

10000

20000

30000

40000

50000

60000

70000V

olu

me

in T

on

s

Years

17

Figure 11: Export volumes of Nitrogen, Phosphorus and Potassium (NPK) fertilizer to the world, 2008 - 2017


Figure 12 presents export volumes of Nitrogen, Phosphorus and Potassium (NPK) fertilizers from South

Africa to Africa particularly the SADC region over the past decade.

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

World 202624 179158 165507 130403 125802 84229 63292 53540 43589 58966

Africa 201700 178697 163785 129460 124609 82456 62081 51259 42264 57771

Americas 475 315 1392 622 803 1479 688 1267 932 783

Asia 184 89 257 186 101 54 389 334 174 131

Europe 202 56 14 25 43 99 33 166 157 169

Oceania 62 0 59 111 99 141 101 479 62 77

0

50000

100000

150000

200000

250000V

olu

me

in T

on

s

Years

18

Figure 12: Volume of NPK exports to SADC, SACU and its member states, 2008 - 2017


Export volumes of NPK fertilizers from South Africa to the SADC went mainly to Zambia, followed by

Zimbabwe and Malawi. Volumes of NPK fertilizers to Zambia were from a high base during the first half

of the ten year period (2008 - 2012) under observation attaining a peak in 2008 at approximately 97 802

tons. Volumes of NPK fertilizers to Zimbabwe were also from a high base during the first half of the ten

year period (2008-2012) under observation attaining a peak in 2009 at approximately 67 605 tons.

Exports to Mozambique have been fairly stable during the past ten years averaging 1 687 tons. There

was a 32% decrease in export volumes of NPK fertilizers from South Africa to Zambia in 2017 as

compared to the 2016 marketing season. Countries from the SACU block have also been notable

importers of NPK fertilizers from South Africa. In SACU, Swaziland has been the leading importer during

2017 season. Swaziland was followed by Botswana and Namibia accounting for 18% and 7% of NPK

fertilizer exports to SACU respectively.

6.4 Potassium Chloride

Figure 13 presents export volumes of potassium chloride from South Africa to the world during the past

decade. Most of the exports of potassium chloride from South Africa went to Africa, followed by very

minimal exports of potassium chloride to Europe between 2008 and 2017. South African KCL exports to

the world were unstable during the period under review. However, exports to Africa were from a high

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Africa 201700178697163785129460124609 82456 62081 51259 42264 57771

SADC (excluding SACU) 199833175553151062111947117773 71856 45291 28789 25937 22119

Democratic Republic of the Congo 261 2837 1570 1381 1523 2518 1763 4631 2357 3641

Mozambique 2549 2878 4500 1212 331 644 3114 396 1591 656

Zambia 97802 61773 75664 65018 55812 22201 8561 9428 18810 12698

Zimbabwe 62893 67605 56308 43278 54744 36330 31397 14145 2422 4479


Botswana 0 0 1813 589 1249 4089 6979 19455 4909 6436

Namibia 0 0 724 49 58 17 108 354 2277 2450

Swaziland 0 0 8542 16721 5226 6356 8371 2481 8241 19985

0

50000

100000

150000

200000

250000V

olu

me

in T

on

s

Years

19

base during the first two year period (2008-2009) of the decade under review. During period between

2010 and 2012, exports of KCL were at their lowest, reaching trough at 1 304 in 2012 and attaining a

peak in 2015 at 25 824 tons.In 2015, almost all (99.9%) KCL exports from South Africa went to Africa.

The remaining went to the European region. There was a 106% increase in export volumes of potassium

chloride from South Africa to Africa in 2017.

Figure 13: Export volumes of Potassium Chloride to the world, 2008 - 2017


Figure 14 presents export volumes of potassium chloride from South Africa to Africa particularly the

SADC region over the past decade. It is clear from figure 14 below that exports of KCL fertilizers to

Africa, mainly went to SADC region. Export volumes of potassium chloride from South Africa to SADC

went mainly to Zimbabwe, followed by Zambia and Angola. Exports to SADC and its member states have

been fairly unstable during the period under review. Exports to Zimbabwe declined rapidly between 2008

and 2012, moving from 7 583 tons in 2008 to 255 tons in 2012. Zambia followed the same trends until

reaching a trough of 2 tons in 2012. Between 2013 and 2017, export to Zimbabwe and Zambia increased

by 2 759% and 2 460% respectively. Exports to SACU region mainly destined for Swaziland. Other

notable importers of KCL fertilizer from South Africa are Namibia and Botswana, but usually register

minimal quantities.

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

World 9551 21870 10478 9322 1473 10206 9114 26284 24239 49920

Africa 9551 21831 9454 9157 1464 10206 9114 26274 24231 49868

Europe 0 15 1000 0 0 0 0 0 8 18

0

10000

20000

30000

40000

50000

60000

Vo

lum

e in

To

ns

Years

20

Figure 14: Export volumes of KCL fertilizer to SADC, SACU and member states, 2008 - 2017


6.5 Potassium Sulphate

Figure 15 shows export volumes of potassium sulphate from South Africa to the world between 2008 and

2017.

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Africa 9551 21831 9454 9157 1464 10206 9114 26274 24231 49868


Angola 178 0 0 300 336 8268 4118 2372 893 143

Mozambique 1507 116 59 473 421 90 256 232 561 629

Zambia 35 7044 4237 4623 2 383 1058 10565 7339 9806

Zimbabwe 7583 1575 3890 3683 255 1114 1981 9430 11765 31855


Botswana 0 0 13 39 98 8 0 31 232 12

Namibia 0 0 32 13 97 218 35 41 87 228

Swaziland 0 0 196 16 103 98 221 3092 3240 6002

0

10000

20000

30000

40000

50000

60000V

olu

me

in T

on

s

Years

21

Figure 15: Export volumes of Potassium Sulphate to the world, 2008 - 2017


It is clear from Figure 15 that export volumes of potassium sulphate to the world went mainly to Africa,

followed by minimal export volumes to Europe. Export of Potassium Sulphate to the world, diminished

between 2008 and 2010, recording a 10% decline. During the period between 2013 and 2017 export

volumes of potassium sulphate to the world and African continent were fairly stable. In 2017, export to

Africa decreased exponentially by 51% compared to 2016 season. During the past decade African

Potassium Sulphate exports reached a maximum of approximately 7 786 tons in 2016. Europe only

managed to import potassium sulphate from South Africa in 2009 and 2010 at an export quantity of 762

and 68 tons respectively.

Figure 16 below illustrates export volumes of potassium sulphate from South Africa to the SADC region

over the past ten years. The major export market for potassium sulphate from South Africa to SADC was

Zimbabwe, followed by Zambia and to a lesser extent by Angola and DRC. On average, South Africa

exported 2 477 tons of potassium sulphate to Zimbabwe over the past decade. Exports of potassium

sulphate from South Africa to Zimbabwe attained a peak in 2008 at approximately 3 664 tons in the first

half of the ten year period (2008-2012). During the second half of the ten-year period (2013-2017),

exports of potassium sulphate to Zimbabwe were from a high base attaining a maximum of about 4 731

tons in 2016, however in 2017, exports to Zimbabwe registered a 51% decrease as compared to 2016.

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

World 3774 4078 3359 4117 2910 3993 2803 3056 7786 3802

Africa 3774 3316 3291 4117 2910 3993 2803 3056 7786 3802

Europe 0 762 68 0 0 0 0 0 0 0

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

Vo

lum

e in

To

ns

Years

22

Figure 16: Export volumes of Potassium Sulphate to SADC and member states, 2008 - 2017


6.6 Superphosphate

Figure 17 presents export quantities of superphosphate fertilizers from South Africa to the world during

the past decade. The only export market for superphosphate fertilizer during the past decade was Africa,

mainly the SADC region. On average, South Africa exported 4 680 tons of superphosphate fertilizer to

Africa over the past decade. Export volumes of superphosphate from South Africa to Africa were from a

high base during the first half of the ten year period (2008-2012) attaining a peak in 2010 at export quantity

of 11 658. There was a 100% decrease in export quantity of superphosphate fertilizer from South Africa

to Africa in 2017 as compared to 2016.

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Africa 3774 3316 3291 4117 2910 3993 2803 3056 7786 3802


Angola 0 2 24 41 26 0 0 0 1010 20

Democratic Republic of the Congo 0 0 10 0 0 0 0 702 613 21

Zambia 82 1206 555 406 123 1104 194 491 1210 522

Zimbabwe 3664 1840 1284 3223 2280 1876 2033 1546 4731 2289

0

1000

2000

3000

4000

5000

6000

7000

8000

9000V

olu

me

in T

on

s

Years

23

Figure 17: Export volumes of Superphosphate to the world, 2008 - 2017


Export volumes of superphosphate fertilizer from South Africa to the SADC region are shown in Figure

18 below.

Figure 18: Export volumes of superphosphate to SADC and SACU, 2008 - 2017


Most of superphosphate fertilizer exports from South Africa to SADC went to Zimbabwe, followed by

minimal exports to Zambia, Angola and DRC. On average, South Africa exported 2 390 tons of

superphosphate fertilizer to Zimbabwe over the past ten years. Export volumes of superphosphate

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

World 577 10732 11658 5880 4198 5282 4921 1364 2291 0

Africa 577 10732 11658 5880 4096 5282 4921 1364 2291 0

0

2000

4000

6000

8000

10000

12000

14000V

olu

me

in T

on

s

Years

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Africa 577 10732 11658 5880 4096 5282 4921 1364 2291 0


Angola 5 6 0 0 0 0 0 0 106 0

Democratic Republic of theCongo

0 6 0 0 0 96 3 42 300 0

Zambia 30 0 30 1037 0 0 0 219 239 0

Zimbabwe 132 3487 10267 2183 1038 1623 3818 273 1074 0


Swaziland 0 0 884 2344 2667 3325 792 707 482 0

02000400060008000

100001200014000

Vo

lum

e in

To

ns

Years

24

fertilizers to Zimbabwe were from a high base during the second half of the ten year period (2013-2017)

attaining a peak in 2010 at approximately 10 267 tons. Exports to Angola and DRC were very low and

not more than 700 tons per annum. There was a 100% decrease in exports of superphosphate fertilizers

from South Africa to Zimbabwe in 2017 as compared to 2016.

7. IMPORT VOLUMES OF FERTILIZERS

7.1 Urea

Import volumes of Urea fertilizers from the world into South Africa over the past ten years are shown in

Figure 19. Most of the Urea fertilizers from the world into South Africa over the past decade were mainly

from Asia, followed by minimal import volumes from Europe and Africa. On average, South Africa

imported 688 414 tons of Urea fertilizer from Asia over the past ten years. Imports of Urea fertilizers from

Asia into South Africa were from a low base during the first half of the ten year period (2008-2012)

attaining a maximum of 745 813 tons in 2012 while the imports were from a high base during the second

half of the ten year period (2013-2017) attaining a peak in 2014 at an import volume of approximately

865 600 tons. Imports from Europe and Africa were very intermittent over the same ten year period under

review. There was a 3% increase in import volumes of Urea from Asia into South Africa during 2017 as

compared to 2016.

Figure 19: Import volumes of Urea fertilizers from the world, 2008 - 2017


2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

World 620192 522456 678981 773938 800821 646071 905000 662789 877638 923762

Africa 6753 125 144 63 65 0 32 151 15015 0

Americas 261 4637 152 95 125 174 18 36 42 4063

Asia 539208 509315 656694 679573 745813 598290 865600 604431 831759 853454

Europe 73859 7615 21951 94207 54818 47606 39308 58170 30822 66246

0

100000

200000

300000

400000

500000

600000

700000

800000

900000

1000000

Vo

lum

e in

To

ns

Years

25

Figure 20 presents import volumes of Urea fertilizers from Western Asia into South Africa during the past

decade. Saudi Arabia was the major supplier for Urea fertilizers imported by South Africa, followed by

Qatar between 2008 and 2017 marketing season. On average, South Africa imported 263 600 tons of

Urea fertilizers from Saudi Arabia over the past ten years. Imports from Saudi Arabia into South Africa

attained a peak in 2016 at approximately 319 594 tons. On average, South Africa imported 255 373 tons

of Urea fertilizers from Qatar over the past decade. Imports from Qatar into South Africa attained a peak

in 2017 at approximately 380202 tons. In 2017, there was a 23% increase in import volume of urea

fertilizers into South Africa Qatar and 13% decrease in import volumes of urea fertilizers into South Africa

from Saudi Arabia . There was a 2% decline in import volumes of urea fertilizers from United Arab

Emirates into South Africa during 2017 as compared to 2016 marketing season.

Figure 20: Import volumes of Urea fertilizers from Western Asia, 2008 - 2017


7.2 Limestone Ammonium Nitrate (LAN)

Figure 21 presents import volumes of Limestone Ammonium Nitrate (LAN) fertilizers from the world into

South Africa between 2008 and 2017 marketing seasons. The major supplier of LAN fertilizers from the

world into South Africa was Europe, followed by minimal import volumes from Asia, Americas and Africa

to a lesser extend over the past decade. On average, South Africa imported 93 416 tons of LAN fertilizers

from Europe over the past ten years. Imports from Europe into South Africa attained a peak in 2008 and

again in 2013 at approximately 151 046 and 146 828 tons respectively. Imports of LAN from Europe to

South Africa were unstable during the past decade, Africa only supplied LAN to South Africa once during

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Asia 539208 509315 656694 679573 745813 598290 865600 604431 831759 853454

Western Asia 512598 507612 601114 638403 694316 567734 595535 578373 783075 834817

United Arab Emirates 0 0 10283 26600 35130 60500 44656 141253 137499 135000

Qatar 234262 175277 201145 243469 281547 262787 234337 230719 309983 380202

Saudi Arabia 261459 277477 327638 279318 310552 191792 206714 184444 319594 277015

0

100000

200000

300000

400000

500000

600000

700000

800000

900000

1000000

Vo

lum

e in

To

ns

Years

26

the past decade in 2011, and Americas are also inconsistent and lesser supplier of LAN to South Africa.

In 2015, Imports of LAN from Europe into South Africa increased by more than 100%. In 2017 after a

successive one year increase. Within Europe, the major supplier region of LAN is the European Union.

Figure 22 below disaggregates the region.

Figure 21: Import volumes of LAN fertilizers from the world, 2008 - 2017


Figure 22 shows import volumes of Limestone Ammonium Nitrate (LAN) fertilizers from the European

Union into South Africa over the past ten years. The major supplier of LAN fertilizers from European

Union into South Africa was from the Netherlands, Germany and Belgium over the past ten years. In

2017, Netherlands, Germany, Belgium and Spain accounted all (100%) LAN imports to South Africa from

the European Union. The Eastern Europe also accounted for 11% of all LAN imports to South Africa. In

Eastern Europe, all imports of LAN destined to South Africa came from Russian Federation. On average,

South Africa imported 36 780 tons of LAN fertilizers from the Netherlands over the past ten years. Import

volumes of LAN fertilizers from the Netherlands into South Africa attained a peak in 2011 at approximately

77 610 tons, while import volumes of LAN fertilizers from Germany attained a peak in 2013 at

approximately 60 205 tons and those from Russia peaked in 2016 at 52 626 tons. There was a 4%

increase in import volumes of LAN fertilizers from Netherlands into South Africa during 2017 as compared

to 2016. Imports from Russia decreased by 98% and Germany increased by 51% in 2017 as compared

to 2016.

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

World 164462 25652 104834 131625 35020 145957 87813 58465 120630 102730

Africa 0 0 0 1811 0 0 0 0 0 0

Americas 13200 0 0 22 0 0 0 0 0 0

Asia 216 200 325 7424 0 3330 2024 3895 3259 7326

Europe 151046 25452 104509 122368 35020 142628 85790 54570 117371 95404

0

20000

40000

60000

80000

100000

120000

140000

160000

180000

Vo

lum

e in

To

ns

Years

27

Figure 22: Import volumes of LAN from EU and Eastern Europe, 2008 - 2017


7.3 Mono-Ammonium Phosphate (MAP)

Import volumes of Mono-Ammonium Phosphate (MAP) fertilizers from the world into South Africa are

depicted in Figure 23. Most of the import volumes of MAP fertilizers from the world into South Africa

during the period under scrutiny were mainly from Europe, followed by Asia and minimal import volumes

from Americas and Africa. On average, South Africa imported 62 869 tons of MAP fertilizers from Europe

over the past decade. Imports from Europe into South Africa attained a peak in 2017 at approximately

197 007 tons, while imports from Asia into South Africa attained a peak also in 2015 at approximately 98

224 tons. There was 402% increase in export volumes of MAP fertilizers from Europe into South Africa

during 2017 as compared to 2016.

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Europe 151046 25452 104509 122368 35020 142628 85790 54570 117371 95404

Eastern Europe 87966 0 19667 11177 0 16200 4988 5497 52626 10430

Russian Federation 0 0 19667 11177 0 16200 4988 5497 52626 10430

European Union 62168 25452 84842 111190 35020 126428 80802 47873 64745 84974

Belgium 20230 17828 12510 14777 7907 7704 6306 13817 2006 11000

Spain 0 0 0 0 0 17350 0 0 0 114

Greece 0 0 1980 16500 0 3600 0 0 0 0

Netherlands 0 4474 67082 77610 26937 37568 34181 29140 44470 46340

Romania 40968 0 0 0 0 0 0 0 0 0

Germany 970 3150 1370 2122 176 60205 23844 450 18269 27521

Latvia 0 0 0 0 0 0 16470 4466 0 0

0

20000

40000

60000

80000

100000

120000

140000

160000V

olu

me

in T

on

s

Years

28

Figure 23: Import volumes of MAP fertilizer from the world, 2008 - 2017


Figure 24 illustrates import volumes of Mono-Ammonium Phosphate (MAP) fertilizers from European

regions and its member states into South Africa over the past ten years.

Figure 24: Import volumes of MAP fertilizer from Europe, 2008 - 2017


As it can be seen from the figure above (Figure 21), all imports of MAP fertilizers originates from Eastern

Europe in particular the Russian Federation.. Between 2008 and 2009, European Union, in particular

Netherlands, Belgium and France were one of the major suppliers of MAP fertilizers into South Africa.

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

World 93501 36942 18074 125686 139434 92446 169972 260727 147361 214080

Africa 0 0 0 0 42758 12600 1528 65512 96350 0

Americas 9670 5045 18 0 20913 5961 0 8392 5 0

Asia 78542 7270 3852 68898 14227 5502 95357 98224 11835 17072

Europe 5290 24627 14204 56789 61536 68383 73087 88599 39171 197007

0

50000

100000

150000

200000

250000

300000V

olu

me

in T

on

s

Years

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Europe 5290 24627 14204 56789 61536 68383 73087 88599 39171 197007

Eastern Europe 3361 0 14096 56242 61530 68378 19601 88591 39165 196998

Russian Federation 3361 0 13596 56242 61530 68378 19601 88591 39165 196998

0

50000

100000

150000

200000

250000

Vo

lum

e in

To

ns

Years

29

With the exception 2009, Russia has been the major supplier. On average, South Africa imported 54 746

tons of MAP fertilizers from Russian Federation over the past decade. Imports from Russian Federation

into South Africa were from a high base during the second half of the ten year period (2013-2017) under

review attaining a peak in 2017 at approximately 196 998 tons. Between 2008 and 2009, import volumes

of MAP fertilizers from the Russian Federation into South Africa were low and not more than 30 000 tons

per annum. There was a 403% increase in import volumes of MAP fertilizers from the Russian Federation

into South Africa during 2017 as compared to 2016.

7.4 Potassium Sulphate

Import volumes of potassium sulphate from the world into South Africa over the past ten years are shown

in Figure 25. The major supplier of potassium sulphate fertilizers from the world into South Africa was

Europe, followed by the Americas and Asia over the same period under examination. Americas

surpassed Europe as the leading supplier of South African Potassium Sulphate on two occasions that is

in 2009 and 2012 while Asia claimed the top spot in 2014, 2016 and 2017. On average, South Africa

imported 24 602 tons of potassium sulphate fertilizers from Europe over the past ten years. Imports from

Europe into South Africa attained a peak in 2013 at approximately 43 513 tons, while imports from the

Americas into South Africa attained a peak in 2012 at approximately 32 460 tons. Imports from Asia into

South Africa attained a peak in 2017 at approximately 337 702 tons. It is also clear from Figure 25 that

there was a 23% decline in import volumes of potassium sulphate from Europe into South Africa during

2017 as compared to 2016 and also those from Americas decreased by 77% and Asia increased by

1272% during the same period.

30

Figure 25: Import volumes of Potassium Sulphate from the world, 2008 - 2017


Import volumes of potassium sulphate from European Union, South America and Eastern Asia into South

Africa over the past decade are illustrated in Figure 26. Most of potassium sulphate fertilizer imports from

the European Union into South Africa were from Germany, followed by Belgium over the past ten year

period under review. Other dominant suppliers over the period under review was Eastern Asia and South

America regions. In the Eastern Asia, China, Taiwan and Republic of Korea have been dominant counties

that supplied South Africa with potassium sulphate fertilizer. In 2017, according to ranks, China was the

top supplier followed by Germany and Taiwan. On average, South Africa imported 38 043 tons of

potassium sulphate fertilizers from China over the past decade. Imports from China into South Africa

attained a peak in 2017 at approximately 330 419 tons, while imports from Germany into South Africa

attained a peak in 2008 at approximately 30 339 tons. There was a more than hundred percent increase

in import volumes of potassium sulphate fertilizers from China into South Africa during 2017 as compared

to 2016 while those from Germany increased by 23% and Taiwan decreased by 46%.

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

World 46607 24009 46175 52620 60675 50468 65268 39740 60463 376424

Africa 0 0 0 0 0 0 0 0 805 11049

Americas 13182 20151 20131 21806 32460 3423 3376 3000 15365 3500

Asia 1065 0 2887 5060 5042 3532 34519 13695 24606 337702

Europe 32360 3858 23157 25754 23098 43513 27373 23045 19687 24173

0

50000

100000

150000

200000

250000

300000

350000

400000V

olu

me

in T

on

s

Years

31

Figure 26: Import volumes of Potassium Sulphate from EU, South America and Eastern Asia countries, 2008 - 2017


7.5 Potassium Chloride

Import volumes of potassium chloride from the world into South Africa during the past ten years are

depicted in Figure 27.

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

South America 13181 20151 20124 21806 32460 3423 3376 3000 12103 3500

Chile 13181 20151 20124 21806 32460 3423 3376 3000 12103 3500

Eastern Asia 576 0 1558 4285 3592 1620 28907 13403 23346 335710

China 115 0 0 208 295 72 26650 10493 12178 330419

Taiwan Province of China 384 0 1224 1032 1307 948 2012 2910 7281 3901

Republic of Korea 77 0 334 3045 1990 600 245 0 3888 1391

Europe 32360 3858 23157 25754 23098 43513 27373 23045 19687 24173

European Union 31601 3858 22337 24705 22026 43020 27373 23045 19687 24149

Belgium 1054 2838 12371 1855 7243 13888 3336 5182 3303 3391

Germany 30339 1016 9936 22846 14779 26645 21323 16299 16248 20052

0

50000

100000

150000

200000

250000

300000

350000

400000

Vo

lum

e in

To

ns

Years

32

Figure 27: Import volumes of Potassium Chloride from the world, 2008 - 2017


The major supplier for potassium chloride fertilizers from the world into South Africa in the past ten years

was Europe, followed by Asia, Americas and minimal import volumes from Africa. On average, South

Africa imported 105 603 tons of potassium chloride fertilizers from Europe between 2008 and 2017

marketing seasons. Import volumes of potassium chloride from Europe into South Africa have been fairly

stable, averaging 105 603 and attaining a peak in 2008 at approximately 150 728 tons. Imports from Asia

into South Africa attained a peak in 2014 at approximately 128 428 tons. There was a 7% decrease in

import volumes of potassium chloride from Europe into South Africa during 2017 as compared to 2016.

Figure 28 presents import volumes of potassium chloride fertilizers from the European Union, South

America and Western Asia into South Africa over the past ten years. The three regions have been the

top exports of potassium chloride to South Africa of the past decade. Most of the potassium chloride

fertilizers from the European Union into South Africa were mainly from Germany, followed by very minimal

imports from Netherlands over the same period under scrutiny while those from South Africa have been

coming solely from Chile. In the Western Asian region, Israel and Jordan have been the main suppliers

of potassium chloride fertilizer into South Africa. On average, South Africa imported 97 905 tons, 80 541

tons and 38 421 tons of potassium chloride fertilizers from Chile, Germany and Israel respectively

between 2008 and 2017 marketing seasons. Imports from Chile and Jordan into South Africa were from

a high base during the second half of the ten year period (2013-2017) under review both attaining a peaks

in 2015 at approximately 135 362 tons and 90 800 tons respectively. There was a 4% increase in import

volumes of potassium chloride fertilizers from Chile and 10% increase in import volumes of potassium

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

World 271402 139592 267446 267119 251310 274086 381512 377358 335422 305798

Africa 0 0 800 0 196 285 557 0 308 0

Americas 13604 60238 78732 90719 95421 112213 134410 135362 126840 131883

Asia 107050 18910 97564 82728 60755 59270 128413 108816 98225 71645

Europe 150728 60420 90324 93672 94938 102318 118132 133181 110048 102270

0

50000

100000

150000

200000

250000

300000

350000

400000

450000V

olu

me

in T

on

s

Years

33

chloride fertilizers from Jordan in 2017. Imports from Germany and Israel decreased by 1% and 59%

respectively during the same period.

Figure 28: Import volumes of Potassium Chloride from South America, EU and Western Asia countries, 2008 - 2017


7.6 Superphosphate

Figure 29 presents import volumes of superphosphate fertilizers from the world into South Africa over the

past decade. The major supplying market for superphosphate fertilizers from the world into South Africa

was Asia, followed by very minimal imports from Africa and Europe over the same period under review.

On average, South Africa imported 21 223 tons of superphosphate fertilizers from Asia between 2008

and 2017 marketing seasons. Imports from Asia into South Africa attained a peak in 2008 at

approximately 58 698 tons. There were no imports of superphosphate fertilizers from Africa into South

Africa in 2009 while Europe did not register any exports to South Africa in 2009, 2010, 2013 and 2014.

Imports from Asia have been fairly stable between 2009 and 2017. In 2017, import volumes of

superphosphate fertilizers from Asia into South Africa increased by 22% as compared to 2016.

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

South America 13604 60238 78728 90653 95421 112205 134410 135362 126557 131876

Chile 13604 60238 78728 90653 95420 112205 134410 135362 126557 131876

Western Asia 106800 18695 95763 82695 60681 59025 125315 108366 97300 71049

Israel 82674 18662 69263 54562 33954 19416 51374 17566 26100 10639

Jordan 24126 0 18150 28133 26728 39610 73942 90800 67200 60410

European Union 116891 55986 47855 91672 94438 72535 106237 87381 100753 100224

Netherlands 0 0 21 0 1900 0 0 0 4006 1

Germany 106987 55885 47833 85321 75715 72535 83960 86614 95577 94982

0

20000

40000

60000

80000

100000

120000

140000

160000

Vo

lum

e in

To

ns

Years

34

Figure 29: Import volumes of Superphosphate from the world, 2008 - 2017


Import volumes of superphosphate fertilizers from Western and Eastern Asia into South Africa during the

past ten years are indicated in Figure 30. The major supplying market for superphosphate fertilizers from

Western Asia into South Africa was Israel and China in the Eastern Asian region. On average, South

Africa imported 18 724 tons of superphosphate fertilizers from Israel between 2008 and 2017. Imports

from Israel into South Africa attained a peak in 2008 at approximately 51 948 tons. During the second

half of the ten year period (2013-2017), imports from Israel into South Africa were stable, averaging 14

752 tons. There was a 27% increase in import volumes of superphosphate fertilizers from Israel into

South Africa during 2017 as compared to 2016.

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

World 72986 9072 26484 24363 32197 22631 24843 24655 24316 17847

Africa 14000 0 7176 4051 11610 1000 2200 5860 5 1413

Americas 0 0 0 0 0 0 0 0 0 0

Asia 58698 9072 19308 19812 17887 21631 22643 13264 13483 16434

Europe 288 0 0 500 2700 0 0 5500 10828 0

0

10000

20000

30000

40000

50000

60000

70000

80000V

olu

me

in T

on

s

Years

35

Figure 30: Import volumes of Superphosphate from Asian regions and member countries, 2007 - 2016


8. SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats)

Strengths

Financial leverage – ability for farmers to use debt to expand business and increase profits;

Customer loyalty- customers are loyal to manufacturer/blender according to additional service

provided;

Customer services manufacturers/blenders often supply technical assistance;

Brand name- consumers place value in the brand name.

Opportunities

Online market- online markets offers the industry to expand by reaching much broader audience;

Innovation – space remains for innovations to produce unique products or service that meet

customer needs;

Loosening regulations- South Africa ‘s fertilizer industry operates in a free market;

New markets- a great opportunity are the African countries and exports to India, Japan and

Columbia.; and

Weaknesses

High debt burden – A total growth in total farm debt;

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Asia 58698 9072 19308 19812 17887 21631 22643 13264 13483 16434

Eastern Asia 4000 0 184 0 0 1512 6959 4234 715 275

China 4000 0 184 0 0 1512 6959 4234 715 275

Western Asia 51948 9044 19124 19812 17887 20119 15684 9030 12768 16159

Israel 51948 6214 17624 19812 17887 20119 15684 9030 12768 16159

0

10000

20000

30000

40000

50000

60000

70000V

olu

me

in T

on

s

Years

36

Out-dated technology- South Africa’s infrastructure that is used to produce primary fertiliser

materials is very old and very expensive to replace;

Weak supply chain - a highly concentrated fertiliser supply chain;

Threats

Volatile currency- price differences are also caused by factors such as the volatile exchange

rate;

Natural factors -Seasonal variations are caused by regional droughts and short term fluctuations

in the financial position of the farm sector;

Intense competition- The South African fertilizer market face stiff competition from overseas

countries;

Volatile revenue - fertilizer is a vitally important determinant of the profitability; and

Political risk- policy uncertainty and political will to invest fertilizer exploration and capacity

expansion programmes.

9. ROLE PLAYERS IN THE FERTILZER INDUSTRY

Table 4: Key Stakeholders

Fertilizer industries

Type of fertilizers

Physical Address

Postal Address

Telephone number

Email address

8.1 Kynoch Liquid, Granular and water soluble fertilizers

Ross street Johannesburg 2125 South Africa

011 317 2000 [email protected]

8.2 Sasol Granular and Liquid fertilizers

1 Sturdee Avenue Rosebank Johannesburg(SA) 2196

P.O Box 5486 Johannesburg(SA) 2000

011 441 3111

8.3 Omnia (Nutriology-Nutrilogie)

Liquid, Granular and specialty fertilizers

Omonia house Epsom Downs office park 13 Sloane st Bryanston

P.O .Box 69888 Bryanston 2021


8.4 Profert Granular and Liquid fertilizers

43 Ross street Potchefstroom North West (SA) 2531


8.5 TRIOMF Granular, Liquid and

TRIOMF road P.O Box 505 Potchefstroom

086 187 4663/ 018 285 1291

[email protected]

37

Fertilizer industries

Type of fertilizers

Physical Address

Postal Address

Telephone number

Email address

Specialty fertilizers

Potchefstroom 2531 North West (SA)

2520

8.6 Nutri-flo Granular and Liquid fertilizers

P.O Box 242 Umhlali 4390


8.7 Greenlands

2 Michelin street, N.W 7 Vanderbijlpark 1911

P.O Box 6852 Vanderbijlpark 1900


8.9Nitrophoska (PTY) Ltd

Liquid, Granular and other fertilizers

Showgrown, George 6529,SA Western Cape

P.O Box 1138 George 6530

044 873 6221/ 044 873 6261

8.10 Jara Liquid and Granular fertilizers

5167 Russel street George 6529 SA Western Cape

044 514 3185

10. ACKNOWLEDGEMENTS

The following organizations are acknowledged:

9.1 Quantec Easy Data

www.easydata.co.za

9.2 Grain SA

www.grainsa.co.za

9.3 Fertilizer Association of Southern Africa (FERTASA)

www.fertasa.co.za

9.4 Statistical and Economic Analysis, DAFF

www.daff.gov.za

http://www.easydata.co.za/

http://www.grainsa.co.za/

http://www.fertasa.co.za/

http://www.daff.gov.za/

south african fertilizers market analysis report 2018webapps.daff.gov.za/amisadmin/upload/south...

Documents