south african fertilizers market analysis report 2017 · the south african fertilizer market is...

SOUTH AFRICAN FERTILIZERS MARKET ANALYSIS REPORT

2017

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

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TABLE OF CONTENTS

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

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

3. MANUFACTURING OF FERTILIZER ............................................................................................. 7

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) ..................................................................................... 26 7.3 MONO-AMMONIUM PHOSPHATE (MAP) ...................................................................................... 28 7.4 POTASSIUM SULPHATE ............................................................................................................. 30 7.5 POTASSIUM CHLORIDE ............................................................................................................. 32 7.6 SUPERPHOSPHATE ................................................................................................................... 34

8. SWOT ANALYSIS (STRENGTHS, WEAKNESSES, OPPORTUNITIES, THREATS) .................. 36

9. ROLE PLAYERS IN THE FERTILZER INDUSTRY ...................................................................... 37

10. ACKNOWLEDGEMENTS ......................................................................................................... 38

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............................................................ 25

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Figure 20: Import volumes of Urea fertilizers from Western Asia, 2007 - 2016 ..................................................... 26 Figure 21: Import volumes of LAN fertilizers from the world, 2007 - 2016 ............................................................ 27 Figure 22: Import volumes of LAN from EU and Eastern Europe, 2007 - 2016 .................................................... 28 Figure 23: Import volumes of MAP fertilizer from the world, 2007 - 2016 ............................................................. 29 Figure 24: Import volumes of MAP fertilizer from Europe, 2007 - 2016 ................................................................ 29 Figure 25: Import volumes of Potassium Sulphate from the world, 2007 - 2016 ................................................... 31 Figure 26: Import volumes of Potassium Sulphate from EU, South America and Eastern Asia countries, 2007 - 2016 ...................................................................................................................................................................... 32 Figure 27: Import volumes of Potassium Chloride from the world, 2007 - 2016 .................................................... 33 Figure 28: Import volumes of Potassium Chloride from South America, EU and Western Asia countries, 2007 - 2016 ...................................................................................................................................................................... 34 Figure 29: Import volumes of Superphosphate from the world, 2007 - 2016 ........................................................ 35 Figure 30: Import volumes of Superphosphate from Asian regions and member countries, 2007 - 2016 ............. 36

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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 2016, with India occupying

the top spot with approximately 282 million tons while Germany occupied the tenth spot with 4.3 million

tons.

Table 1: Global fertilizer production rankings - 2016

Rank Country Tons (Thousands)

1 India 282 896

2 Russia 244 106

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Rank Country Tons (Thousands)

3 Canada 210 683

4 United States of America 174 101

5 Belarus 102 506

6 Indonesia 100 749

7 Ukraine 42 546

8 Trinidad & Tobago 4 824

9 China 4 508

10 Germany 4 394

Source: FAOSTAT, 2016

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

Nitrogen (N), Phosphorus (P) and Potassium (K) between 2006 and 2015 marketing seasons.

Figure 1: Global consumption of fertilizers, 2006 - 2015

Source: IFA, 2017

It is quite clear from the Figure 1 above that, generally fertilizer consumption remained stable over the

period between 2006 and 2015. 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 2006 except for a slight decline in 2008 to

approximately 97 million tons. In 2015, the demand for nitrogen fertilizer increased slightly by 0.6% and

peaked at approximately 109.8 million tons in 2014. Globally, the demand for phosphorus and

potassium fertilizers was very low compared to Nitrogen during the ten year period under review and

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

N 93111 94814 89956 95711 96978 100526 101194 104081 102488 103895

P 39793 39420 34710 39902 42420 42917 43690 44998 45897 46533

K 27431 28115 23499 22592 28191 29039 29588 31553 33549 33741

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not more than 50 million tons per annum. Nitrogen-based fertilizers are the most used for crop

production. The 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 rview. 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.

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3. MANUFACTURING OF FERTILIZER

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 which involves different ingredients used is shown

in Figure 3 above. 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.

Sulphuric Acid

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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.

Natural Gas

Air

Anhydrous

Ammonia

Am

Nitrate

UAN

Solution

Urea

O2 Nitric

Acid

Urea

Liquid Am

Nitrate

UAN

Blending

Granulation

CO2

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The two 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.

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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 (2007 to 2016).

Prices of all fertilizers experienced a price increase during 2008 season. Average fertilizer prices of

Mono-Ammonium Phosphate (MAP) dominated over the past nine 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

Crystallizatio

n

Size Reduction Flotation to Separate

Potash from Salt Remove Clay

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

2015. Prices of MAP however declined slightly by 3% during 2016 season. Potassium Chloride average

prices attained a peak in 2008 at approximately R9 544.92. Prices of Potassium Chloride have been

fairly stable over the past 7 years, maintaining an average of R6 953.17 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 2016, average prices of

fertilizers in South Africa increased although at slow increasing trends. Between 2006 and 2007 and

between 2009 and 2010, average fertilizer prices in South Africa were low and that benefitted farmers

in terms of prices and affordability. However in 2008, farmers had to deal with high average prices

which had an impact on production and farm income. This sharp increase in fertilizer prices in 2007 and

2008 could be attributed to high oil prices, imposed import duties and weaker exchange rate.

Figure 6: South African fertilizer prices, 2007 - 2016

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

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

MAP 5421 13189 5595 6337 7252 7646 7739 8004 9565 9271

LAN 3031 5329 3606 3494 4462 4808 5255 5399 5474 5358

Urea 4275 7408 4913 4382 5640 6173 6181 6258 6311 5834

Potassium Chloride 3509 9544 9615 5924 5988 6827 7049 6784 7287 7005

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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

Fertilizers March 2017 R/ton

March 2018 R/ton

% CHANGE

LAN (28) 5 527 5 498 -0.5

Urea(46) 6 046 5 847 -3.3

MAP 8 519 8 414 -1.2

Potassium chloride 6 274 6 584 4.9 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 March 2017

R/ton

March 2018

R/ton

% CHANGE

Ammonia 3 904 3 803 -2.6

Urea(46) 3 284 2 764 -15.9

DAP 4 762 4 783 0.5

Potassium chloride 2 849 2 858 0.3

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 worth

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

Exports volumes of LAN to Africa attained a peak in 2007 at approximately 60 076 tons followed by a

94% decrease in 2008. 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 2016, the LAN exports also increased by 82% when

compared to 2015 season.

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Figure 7: Export volumes of LAN fertilizer to the world, 2007 - 2016

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 2007 at approximately 45 043 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 more than half(54%) of South African total LAN exports to SADC (17 410

tons) in 2016.

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Worlds 60110 3855 37688 14478 3330 944 1610 8242 9733 17774

Africa 60076 3825 37022 13938 3330 896 1610 8242 9733 17774

Americas 0 0 598 540 0 0 0 0 0 0

Asia 0 30 0 0 0 0 0 0 0 0

Europe 0 0 68 0 0 0 0 0 0 0

Oceania 34 0 0 0 0 48 0 0 0 0

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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 2007 and 2016 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 2016, all MAP exports were desrtined to the

African 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 2015 at

approximately 33 000 tons. Export volumes of MAP fertilizer from South Africa to Oceania attained a

peak in 2012 at approximately 17 926 tons. In 2015, export to Africa fell significantly from 60 641 tons

to 41 856 tons, a 31% decline when compared to 2015 season. There was an increase of

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Africa 60076 3825 37022 13938 3330 896 1610 8242 9733 17774

SADC (excluding SACU) 60074 3824 37013 11182 2637 258 1245 8016 9368 17410

Angola 0 5 6 0 67 140 93 48 72 134

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

Malawi 11250 1080 12303 5356 2078 0 92 6185 7160 9404

Mauritius 43 0 190 0 0 0 0 0 0 0

Mozambique 20 0 4303 0 9 54 0 62 1 84

Zambia 3718 2673 2081 698 433 29 1028 1264 36 1931

Zimbabwe 45043 0 17896 5094 31 1 32 448 2075 3839

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Figure 9: Export volumes of Mono-Ammonium Phosphate (MAP) to the world, 2007 - 2016


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 (2011-2015) 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 31% decrease in export volumes of MAP fertilizer from South Africa to SADC and

Zambia in 2015 as compared to the 2014 marketing season. Exports to SACU increased significantly

by 50% in 2016 when compared to 2015 season.

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

World 25593 77537 32729 30704 77493 51494 87862 46540 93654 41856

Africa 10590 57537 12671 19692 20011 11959 46804 46540 60654 41856

Americas 15000 0 20034 0 57482 21609 25005 0 33000 0

Asia 0 20000 0 0 0 0 0 0 0 0

Oceania 3 0 24 11012 0 17926 16053 0 0 0

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Figure 10: Volumes of Mono-Ammonium Phosphate (MAP) exports to African regions and countries, 2007 - 2016


6.3 Nitrogen, Phosphorus and Potassium (NPK)

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

world between 2007 and 2016 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 (2007-2016) attaining a peak in 2008 at approximately 201 700 tons. There was 15%

decrease in export volumes of NPK fertilizers to Africa in 2016 as compared to 2015 and a fall of 72%

in export volumes of NPK fertilizers to Africa in 2016 compared to 2007.

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Africa 10590 57537 12671 19692 20011 11959 46804 46540 60654 41856


Zambia 40 44 5495 5862 4151 9839 31756 27061 30691 20879

Zimbabwe 6335 11674 5574 12954 4650 1144 12332 17867 28859 19366

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

Namibia 0 0 0 6 50 1 652 771 505 760

Swaziland 0 0 0 107 35 1 0 0 445 514

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Figure 11: Export volumes of Nitrogen, Phosphorus and Potassium (NPK) fertilizer to the world, 2007 - 2016


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.

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

World 199379 202624 179158 158050 129867 114944 83345 62825 51811 43417

Africa 198244 201700 178697 156328 128924 113752 81572 61744 49531 42091

Americas 784 475 315 1392 622 803 1479 688 1267 932

Asia 201 184 89 257 186 101 54 259 334 174

Europe 5 202 56 14 25 43 99 33 166 157

Oceania 87 62 0 59 111 99 141 101 479 62

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Figure 12: Volume of NPK exports to SADC, SACU and its member states, 2007 - 2016


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 (2007 - 2011) 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 (2007-2011) under observation attaining a peak in 2007 at approximately 71 952

tons. Exports to Mozambique have been fairly stable during the past ten years averaging 2 197 tons.

There was a 108% increase in export volumes of NPK fertilizers from South Africa to Zambia in 2016 as

compared to the 2015 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 2016 season. Swaziland was followed by Botswana and Namibia accounting for 30% and 14%

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

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Africa 198244201700178697156328128924113752 81572 61744 49531 42091

SADC (excluding SACU) 197741199833175553143605111411106916 70971 44954 27061 25764

Democratic Republic of the Congo 16 261 2837 1570 1381 1489 2518 1763 4631 2357

Mozambique 4756 2549 2878 4500 1212 331 644 3114 396 1591

Zambia 64140 97802 61773 71084 64713 55136 21829 8530 8943 18637

Zimbabwe 71952 62893 67605 53431 43047 44597 35817 31091 12900 2422


Botswana 0 0 0 1813 589 1249 4089 6979 19455 4909

Namibia 0 0 0 724 49 58 17 108 354 2277

Swaziland 0 0 0 8542 16721 5226 6356 8371 2481 8241

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

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minimal exports of potassium chloride to Europe between 2007 and 2016. South African KCL exports to

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

base during the first three year period (2007-2009) 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 7% decrease in export volumes of potassium

chloride from South Africa to Africa in 2016.

Figure 13: Export volumes of Potassium Chloride to the world, 2007 - 2016


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 it member states

have been fair unstable during the period under review. Exports to Zimbabwe declined rapidly between

2007 and 2012, moving from 11 795 tons in 2007 to 255 tons in 2012. Zambia followed the same

trends until reaching a trough of 2 tons in 2012. Between 2013 and 2016, export to Zimbabwe and

Zambia increased by 1 796% and 1 979% 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.

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

World 19766 9551 21870 7978 7618 1313 9672 9105 25824 24118

Africa 19766 9551 21831 6954 7618 1304 9672 9105 25824 24110

Europe 0 0 15 1000 0 0 0 0 0 8

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Figure 14: Export volumes of KCL fertilizer to SADC, SACU and member states, 2007 - 2016


6.5 Potassium Sulphate

Figure 15 shows export volumes of potassium sulphate from South Africa to the world between 2007

and 2016.

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Africa 19766 9551 21831 6954 7618 1304 9672 9105 25824 24110


Angola 0 178 0 0 300 336 8268 4118 2372 893

Mozambique 61 1507 116 43 473 261 90 256 232 486

Zambia 7933 35 7044 3660 4128 2 353 1050 10125 7338

Zimbabwe 11759 7583 1575 1986 2638 255 619 1981 9430 11730


Botswana 0 0 0 13 39 98 8 0 31 232

Namibia 0 0 0 32 13 97 218 35 41 87

Swaziland 0 0 0 196 16 103 98 221 3092 3240

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Figure 15: Export volumes of Potassium Sulphate to the world, 2007 - 2016


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 2007 and 2010, recording a 71% decline. During the period between 2013 and 2015 export

volumes of potassium sulphate to the world and African continent were fairly stable. In 2016, export to

Africa increased exponentially by 157% compared to 2015 season. During the past decade African

Potassium Sulphate exports reached a maximum of approximately 8 291 tons in 2007. 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 2 835 tons of potassium sulphate to Zimbabwe over the past decade. Exports of

potassium sulphate from South Africa to Zimbabwe attained a peak in 2006 at approximately 7 889

tons in the first half of the ten year period (2007-2011). During the second half of the ten-year period

(2011-2015), exports of potassium sulphate to Zimbabwe were from a low base attaining a maximum of

about 3 223 tons in 2011, however in 2016, exports to Zimbabwe registered a 212% increase.

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

World 8363 3774 4078 2498 4110 2251 3525 2783 3022 7777

Africa 8291 3774 3316 2430 4110 2251 3525 2783 3022 7777

Europe 0 0 762 68 0 0 0 0 0 0

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Figure 16: Export volumes of Potassium Sulphate to SADC and member states, 2007 - 2016


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 4 704 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 (2007-2011) attaining a peak in 2010

at export quantity of 11 658. There was a 68% decrease in export quantity of superphosphate fertilizer

from South Africa to Africa in 2016.

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Africa 8291 3774 3316 2430 4110 2251 3525 2783 3022 7777


Angola 0 0 2 24 41 26 0 0 0 1010


Zambia 111 82 1206 555 399 123 1088 174 491 1210

Zimbabwe 7889 3664 1840 423 3223 1621 1424 2033 1512 4722

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Figure 17: Export volumes of Superphosphate to the world, 2007 - 2016


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, 2007 - 2016


2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

World 305 577 10732 11658 5880 4198 5216 4921 1364 2291

Africa 305 577 10732 11658 5880 4096 5216 4921 1364 2291

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2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Africa 305 577 10732 11658 5880 4096 5216 4921 1364 2291


Angola 0 5 6 0 0 0 0 0 0 106


Zambia 64 30 0 30 1037 0 0 0 219 239

Zimbabwe 0 132 3487 10267 2183 1038 1623 3818 273 1074


Swaziland 0 0 0 884 2344 2667 3325 792 707 482

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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

fertilizers to Zimbabwe were from a high base during the second half of the ten year period (2012-2016)

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 32% decrease in exports of superphosphate fertilizers

from South Africa to Zimbabwe in 2016 as compared to 2015.

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 714 908 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

(2007-2011) attaining a maximum of 656 694 tons in 2010 while the imports were from a high base

during the second half of the ten year period (2011-2015) 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 38% increase in import volumes of Urea from Asia into

South Africa during 2016 as compared to 2015.

25

Figure 19: Import volumes of Urea fertilizers from the world, 2007 - 2016


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 2007 and 2016 marketing season. On average, South Africa imported 269 504 tons

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

Africa attained a peak in 2007 at approximately 336 054 tons. On average, South Africa imported 237

760 tons of Urea fertilizers from Qatar over the past decade. Imports from Qatar into South Africa

attained a peak in 2016 at approximately 309 983 tons. In 2016, there was a 34% and 73% increase in

import volumes of urea fertilizers into South Africa from Qatar and Saudi Arabia respectively.. There

was a 3% decline in import volumes of urea fertilizers from United Arab Emirates into South Africa

during 2016 as compared to 2015 marketing season.

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

World 661196 620192 522456 678981 773938 800821 646071 905000 662789 877638

Africa 3226 6753 125 144 63 65 0 32 151 15015

Americas 67 261 4637 152 95 125 174 18 36 42

Asia 560634 539208 509315 656694 679573 745813 598290 865600 604431 831759

Europe 97146 73859 7615 21951 94207 54818 47606 39308 58170 30822

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Figure 20: Import volumes of Urea fertilizers from Western Asia, 2007 - 2016


7.2 Limestone Ammonium Nitrate (LAN)

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

South Africa between 2007 and 2016 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 94 054 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 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

2016 after successive two year decline. Within Europe, the major supplier region of LAN is the

European Union. Figure 22 below disaggregates the region.

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Asia 560634 539208 509315 656694 679573 745813 598290 865600 604431 831759

Western Asia 558304 512598 507612 601114 638403 694316 567734 595535 578373 783075

Qatar 204069 234262 175277 201145 243469 281547 262787 234337 230719 309983

Saudi Arabia 336054 261459 277477 327638 279318 310552 191792 206714 184444 319594

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

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Figure 21: Import volumes of LAN fertilizers from the world, 2007 - 2016


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

2016, Netherlands, Germany and Belgium accounted all (100%) LAN imports to South Africa from the

European Union. The Eastern Europe also accounted for 45% 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 33 286 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

53% increase in import volumes of LAN fertilizers from Netherlands into South Africa during 2016 as

compared to 2015. Imports from Russia and Germany increased by 857% and 3 960% respectively

2016.

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

World 66083 164462 25652 104834 131625 35020 145957 87813 58465 120630

Africa 0 0 0 0 1811 0 0 0 0 0

Americas 0 13200 0 0 22 0 0 0 0 0

Asia 0 216 200 325 7424 0 3330 2024 3895 3259

Europe 66083 151046 25452 104509 122368 35020 142628 85790 54570 117371

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Figure 22: Import volumes of LAN from EU and Eastern Europe, 2007 - 2016


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 43 736 tons of MAP fertilizers

from Europe over the past decade. Imports from Europe into South Africa attained a peak in 2015 at

approximately 88599 tons, while imports from Asia into South Africa attained a peak also in 2015 at

approximately 98 224 tons. There was 56% drop in export volumes of MAP fertilizers from Europe into

South Africa during 2016 as compared to 2015.

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Europe 66083 151046 25452 104509 122368 35020 142628 85790 54570 117371

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

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

European Union 63265 62168 25452 84842 111190 35020 126428 80802 47873 64745

Belgium 35364 20230 17828 12510 14777 7907 7704 6306 13817 2006

Greece 16500 0 0 1980 16500 0 3600 0 0 0

Netherlands 11401 0 4474 67082 77610 26937 37568 34181 29140 44470

Romania 0 40968 0 0 0 0 0 0 0 0

Spain 0 0 0 0 0 0 17350 0 0 0

Germany 0 970 3150 1370 2122 176 60205 23844 450 18269

Latvia 0 0 0 0 0 0 0 16470 4466 0

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Figure 23: Import volumes of MAP fertilizer from the world, 2007 - 2016


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, 2007 - 2016


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 2007 and 2009, European Union, in

particular Netherlands, Belgium and France were one of the major suppliers of MAP fertilizers into

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

World 68723 93501 36942 18074 125686 139434 92446 169972 260727 147361

Africa 0 0 0 0 0 42758 12600 1528 65512 96350

Americas 9440 9670 5045 18 0 20913 5961 0 8392 5

Asia 53613 78542 7270 3852 68898 14227 5502 95357 98224 11835

Europe 5670 5290 24627 14204 56789 61536 68383 73087 88599 39171

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2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Europe 5670 5290 24627 14204 56789 61536 68383 73087 88599 39171

Eastern Europe 2430 3361 0 14096 56242 61530 68378 19601 88591 39165

Russian Federation 2430 3361 0 13596 56242 61530 68378 19601 88591 39165

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

imported 35 289 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 (2011-2016) under review attaining a peak in 2015 at approximately 88 591 tons. Between 2006

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 56% decrease in import volumes of MAP

fertilizers from the Russian Federation into South Africa during 2016 as compared to 2015.

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 and 2016. On average, South Africa

imported 23 599 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 2014 at approximately 34 519 tons. It is also clear from Figure 25

that there was a 14.5% decline in import volumes of potassium sulphate from Europe into South Africa

during 2016 as compared to 2015 while those from Americas and Asia increased by 412% and 79%

respectively during the same period.

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Figure 25: Import volumes of Potassium Sulphate from the world, 2007 - 2016


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 2016, according to

ranks, Germany was the top supplier followed by China and Chile. On average, South Africa imported

17 131 tons of potassium sulphate fertilizers from Germany over the past decade. Imports from

Germany into South Africa attained a peak in 2008 at approximately 30 339 tons, while imports from

China into South Africa attained a peak in 2014 at approximately 26 645 tons. There was a less than

one percent decline in import volumes of potassium sulphate fertilizers from Germany into South Africa

during 2016 as compared to 2015 while those from China and Chile increased by 16% and 303%

respectively.

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

World 38764 46607 24009 46175 52620 60675 50468 65268 39740 60463

Africa 0 0 0 0 0 0 0 0 0 805

Americas 24570 13182 20151 20131 21806 32460 3423 3376 3000 15365

Asia 49 1065 0 2887 5060 5042 3532 34519 13695 24606

Europe 14145 32360 3858 23157 25754 23098 43513 27373 23045 19687

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Figure 26: Import volumes of Potassium Sulphate from EU, South America and Eastern Asia countries, 2007 - 2016


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.

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

South America 24570 13181 20151 20124 21806 32460 3423 3376 3000 12103

Chile 24570 13181 20151 20124 21806 32460 3423 3376 3000 12103

Eastern Asia 1 576 0 1558 4285 3592 1620 28907 13403 23346

China 1 115 0 0 208 295 72 26650 10493 12178

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

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

Europe 14145 32360 3858 23157 25754 23098 43513 27373 23045 19687

European Union 14145 31601 3858 22337 24705 22026 43020 27373 23045 19687

Belgium 1626 1054 2838 12371 1855 7243 13888 3336 5182 3303

Germany 11878 30339 1016 9936 22846 14779 26645 21323 16299 16248

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Figure 27: Import volumes of Potassium Chloride from the world, 2007 - 2016


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

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

Africa imported 106 808 tons of potassium chloride fertilizers from Europe between 2007 and 2016

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

fairly stable, averaging 106 808 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 17%

decrease in import volumes of potassium chloride from Europe into South Africa during 2016 as

compared to 2015.

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 87

548 tons, 82 104 tons and 46 370 tons of potassium chloride fertilizers from Chile, Germany and Israel

respectively between 2007 and 2016 marketing seasons. Imports from Chile and Jordan into South

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

World 255445 271402 139592 267446 267119 251310 274086 381512 377358 335422

Africa 0 0 0 800 0 196 285 557 0 308

Americas 28306 13604 60238 78732 90719 95421 112213 134410 135362 126840

Asia 112725 107050 18910 97564 82728 60755 59270 128413 108816 98225

Europe 114414 150728 60420 90324 93672 94938 102318 118132 133181 110048

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Africa were from a high base during the second half of the ten year period (2011-2016) under review

both attaining a peaks in 2015 at approximately 135 362 tons and 90 800 tons respectively. There was

a 6% and 26% decrease in import volumes of potassium chloride fertilizers from Chile and Jordan

respectively in 2016. Imports from Germany and Israel increase by 10% and 48% respectively during

the same period.

Figure 28: Import volumes of Potassium Chloride from South America, EU and Western Asia countries, 2007 - 2016


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 tons of superphosphate fertilizers from Asia between 2006

and 2015 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 between 2007 and 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 2016. In 2016, import

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

South America 28306 13604 60238 78728 90653 95421 112205 134410 135362 126557

Chile 28306 13604 60238 78728 90653 95420 112205 134410 135362 126557

Western Asia 112725 106800 18695 95763 82695 60681 59025 125315 108366 97300

Israel 90125 82674 18662 69263 54562 33954 19416 51374 17566 26100

Jordan 20000 24126 0 18150 28133 26728 39610 73942 90800 67200

Netherlands 3800 0 0 21 0 1900 0 0 0 4006

Germany 110613 106987 55885 47833 85321 75715 72535 83960 86614 95577

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volumes of superphosphate fertilizers from Asia into South Africa increased by 1.6% as compared to

2015.

Figure 29: Import volumes of Superphosphate from the world, 2007 - 2016


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 18 669 tons of superphosphate fertilizers from Israel between 2007 and 2016.

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 (2010-2016), imports from Israel into South Africa were stable,

averaging 16 132 tons. There was a 41% increase in import volumes of superphosphate fertilizers from

Israel into South Africa during 2016 as compared to 2015.

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

World 17527 72986 9072 26484 24363 32197 22631 24843 24655 24316

Africa 0 14000 0 7176 4051 11610 1000 2200 5860 5

Americas 0 0 0 0 0 0 0 0 0 0

Asia 15608 58698 9072 19308 19812 17887 21631 22643 13264 13483

Europe 1919 288 0 0 500 2700 0 0 5500 10828

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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;

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Asia 15608 58698 9072 19308 19812 17887 21631 22643 13264 13483

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

China 0 4000 0 184 0 0 1512 6959 4234 715

Western Asia 15608 51948 9044 19124 19812 17887 20119 15684 9030 12768

Israel 15608 51948 6214 17624 19812 17887 20119 15684 9030 12768

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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 Potchefstroom

P.O Box 505 Potchefstroom

086 187 4663/ 018 285 1291

[email protected]

38

Fertilizer industries

Type of fertilizers

Physical Address

Postal Address

Telephone number

Email address

Specialty fertilizers

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/

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