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SOUTH AFRICAN FERTILIZERS MARKET ANALYSIS REPORT

2015

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 ............................................................................................... 3

2. GLOBAL FERTILISER PRODUCTION AND CONSUMPTION ...................................................... 3

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

5. LOCAL FERTILIZER PRICES VS INTERNATIONAL FERTILIZER PRICES ................................. 9

6. EXPORT VOLUMES OF FERTILIZERS ....................................................................................... 10

6.1 LIMESTONE AMMONIUM NITRATE (LAN) ..................................................................................... 10

6.2 MONO-AMMONIUM PHOSPHATE (MAP) ...................................................................................... 12

6.3 NITROGEN, PHOSPHORUS AND POTASSIUM (NPK) ...................................................................... 13

6.4 POTASSIUM CHLORIDE ............................................................................................................. 15

6.5 POTASSIUM SULPHATE ............................................................................................................. 16

6.6 SUPERPHOSPHATE ................................................................................................................... 17

7. IMPORT VOLUMES OF FERTILIZERS ........................................................................................ 19

7.1 UREA ...................................................................................................................................... 19

7.2 LIMESTONE AMMONIUM NITRATE (LAN) ..................................................................................... 21

7.3 MONO-AMMONIUM PHOSPHATE (MAP) ...................................................................................... 22

7.4 POTASSIUM SULPHATE ............................................................................................................. 24

7.5 POTASSIUM CHLORIDE ............................................................................................................. 25

7.6 SUPERPHOSPHATE ................................................................................................................... 26

8. SWOT ANALYSIS (STRENGTHS, WEAKNESSES, OPPORTUNITIES, THREATS) .................. 28

9. ROLE PLAYERS IN THE FERTILZER INDUSTRY ...................................................................... 29

10. ACKNOWLEDGEMENTS ......................................................................................................... 30

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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 2014, with China occupying

the top spot with approximately 84 million tons while Trinidad and Tobago occupied the tenth spot with

five million tons.

Table 1: Global fertilizer production rankings - 2014

RANK COUNTRY TONS(‘000)

1 China 84 292

2 Russia 24 404

3 Canada 21 710

4

RANK COUNTRY TONS(‘000)

4 United State 20 952

5 India 14 516

6 Belarus 7 653

7 Germany 7 087

8 Indonesia 5 421

9 Ukraine 5 024

10 Trinidad & Tobago 4 925

Source: Grain SA, 2015

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

Nitrogen (N), Phosphorus (P) and Potassium (K) between 2004 and 2013 marketing seasons.

Source: Grain SA

It is quite clear from the Figure 1 above that the demand for nitrogen fertilizers was high over the past

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

consumption of nitrogen fertilizer consistently increased from 2004 except for a slight decline in 2008 to

approximately 95 million tons. In 2013, the demand for nitrogen fertilizer increased dramatically and

peaked at approximately 110 million tons. 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 41 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.

0

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2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

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Figure 1: Global fertiliser consumption

N P K

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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 2004 and 2015 is depicted in Figure 2 below.

Source: Fertasa

It is quite clear from Figure 2 above that nitrogen fertilizers were 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 experienced an increase from 2004 and a decline in 2005 and 2010 to

approximately 350 000 and 400 000 tons respectively. In 2009, the demand for fertilizer increased

dramatically 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 not

more than 130 000 tons per annum.

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2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

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Figure 2: Fertiliser consumption in South Africa

N P K

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3. MANUFACTURING OF FERTILIZER

3.1 Figure 3: Phosphate fertilizers 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 rock

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 food crops such as maize.

Sulphuric Acid

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3.2 Figure 4: Nitrogen Fertilizer manufacturing process

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 is used to make ammonium nitrate. This material is a good fertilizer component because it has a high concentration of nitrogen.

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.

Natural

Gas

Air

Anhydrous

Ammonia

Ammonia

Am

Nitrate

UAN

Solution

Urea

O2 Nitric

Acid

Urea

Liquid

Am

Nitrate

UAN

Blending

Granulation

CO2

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3.3 Figure 5: Potash fertilizer manufacturing process

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 during 2014/15 production season. 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 and

standard (solid fertilizer industrial).

4. FERTILIZER MARKET AND PRICING

Figure 6 shows average fertilizer prices in South Africa for the period under scrutiny (2006 and 2014).

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 2014

to price levels of approximately R8 004.00 per ton. Potassium Chloride average prices attained a peak

in 2008 and again in 2009 at approximately R9 544.00 and R9 615.00 per ton respectively. The

Compaction

Ore from mine

Dewatering &

Drying

Sizing

Crystallizati

on

Size Reduction Flotation to

Separate Potash

from Salt

Remove Clay

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average prices of Urea (46) and Limestone Ammonium Nitrate (LAN) attained their peaks also in 2008

at approximately R7 408.00 and R5 329.00 respectively. Generally, it is evident from the figure below

that between 2010 and 2014, 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 but in 2008,

farmers had to deal with high average prices which had an impact on production and farm income.

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 local 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 because of fluctuations in the exchange rate between the

rand and other currencies globally.

Table 2: Local fertilizer prices

Fertilizers April 2013 R/ton

April 2014 R/ton

% CHANGE

KAN 5 518 5 590 1.3

Urea(46) 6 456 6 834 5.9

MAP 7 456 8 274 11.0

2006 2007 2008 2009 2010 2011 2012 2013 2014

MAP 3603 5055 13188 5595 6337 7252 7646 7739 8004

KAN / LAN (28) 2269 2818 5329 3606 3494 4462 4807 5254 5399

Ureum / Urea (46) 3258 3972 7408 4913 4382 5640 6173 6181 6258

Kaliumchloried / PotassiumChloride (grof/granular)

2832 3255 9544 9615 5924 5988 6827 7049 6784

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Figure 6: Average fertiliser prices in South Africa

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Fertilizers April 2013 R/ton

April 2014 R/ton

% CHANGE

Potassium chloride 7 041 6 989 -0.7 Source: GrainSA

Table 3: International fertilizer prices

Fertilizers April 2013

R/ton

April 2014

R/ton

% CHANGE

KAN 5 069 5 031 -0.7

Urea(46) 3 809 3 736 1.9

MAP 4 307 5 247 21.8

Potassium chloride 3 789 3 201 15.5

Source: Grain SA

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. Most 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. Eports

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

in 2008. In 2012, exports of LAN to Africa reached its lowest point at approximately 778 tons. There

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

2013 marketing season.

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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

Zimbabwe, followed by Malawi during 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. There was a 1 300%

increase in export volumes of LAN fertilizer to Zimbabwe in 2014 as compared to 2013.


2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Africa 32107 5443 60076 3825 37022 11700 2692 778 1245 8018

Americas 0 0 0 0 598 540 0 0 0 0

Asia 0 2 0 30 0 0 0 0 0 0

Europe 0 31 0 0 68 0 0 0 0 0

Oceania 0 0 34 0 0 0 0 48 0 0

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Figure 7: Export volumes of Limestone Ammonium Nitrate (LAN) fertilizer to the world

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Democratic Republic of theCongo

0 0 0 66 235 34 19 34 0 9

Malawi 17945 34 11250 1080 12303 5840 2078 0 92 6185

Mozambique 22 8 20 0 4303 0 9 54 0 62

Zambia 3789 2928 3718 2673 2081 698 488 29 1028 1264

Zimbabwe 10351 2471 45043 0 17896 5128 31 451 32 448

05000

100001500020000250003000035000400004500050000

Exp

ort

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s)

Period (Years)

Figure 8: Exports of Limestone Ammonium Nitrate (LAN) fertilizer to SADC

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6.2 Mono-Ammonium Phosphate (MAP)

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

between 2005 and 2014 marketing seasons. The major export market for MAP fertilizer was mainly

Africa, followed by Americas and Oceania over the past decade. Export volumes of MAP fertilizer from

South Africa to Africa attained a peak in 2008 at approximately 57 537 tons, while export volumes of

MAP fertilizers to Americas attained a peak in 2011 at approximately 81 982 tons. Export volumes of

MAP fertilizer from South Africa to Oceania attained a peak in 2005 at approximately 57 054 tons, while

export volumes of MAP fertilizers to Asia attained a peak in 2008 at approximately 20 000 tons. There

was a slight decline of 1, 6% in export volumes of MAP fertilizer to Africa in 2014 as compared to the



Export volumes of Mono-Ammonium Phosphate (MAP) fertilizer to Africa particularly the SADC region

are depicted in Figure 10. Volumes of MAP fertilizer exports from South Africa to SADC went mainly to

Zambia followed by Zimbabwe and Mozambique during the period under observation. Volumes to

Zambia were from a high based during the second half (2010-2014) of the ten year period attaining a

peak in 2013 at approximately 32 298 tons. Malawi and the United Republic of Tanzania 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 an 11.1% decline in export volumes of MAP fertilizer from

South Africa to Zambia in 2014 as compared to the 2013 marketing season.

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Africa 12817 11328 10590 57537 12671 21629 19619 12035 48714 47929

Americas 15360 0 15000 0 20034 0 81982 21609 25000 0

Asia 0 0 0 20000 0 0 0 0 0 0

Oceania 57054 8500 3 0 24 11012 0 34826 18500 0

0100002000030000400005000060000700008000090000

Exp

ort

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ton

s)

Period (Years)

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

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6.3 Nitrogen, Phosphorus and Potassium (NPK)

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

world between 2005 and 2014 marketing seasons. 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 (2005-2009) attaining a peak in 2008 at approximately 201 700 tons. During

the second half of the same period (2010-2014) under observation, export volumes of NPK fertilizers to

Africa were declining consistently until the lowest levels of exports were attained in 2014 at

approximately 46 540 tons. There was 37.1% decrease in export volumes of NPK fertilizers to Africa in

2014 as compared to 2013.

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Malawi 1942 1 4 262 60 7 0 666 1842 475

Mozambique 0 0 0 45460 40 60 84 57 0 55

United Republic of Tanzania 0 0 0 0 0 0 10000 0 0 253

Zambia 1199 2399 40 44 5495 5862 4325 10037 32298 28714

Zimbabwe 1678 5918 6335 11674 5574 15004 5164 1252 14380 18407

05000

100001500020000250003000035000400004500050000

Exp

ort

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s)

Period (Years)

Figure 10: Export volumes of Mono-Ammonium Phosphate (MAP) fertilzer to SADC

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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.


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 (2005-2009) 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 (2005-2009) under observation attaining a peak in 2007 at approximately 71 952 tons.

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Africa 182591 168764 198244 201700 178697 148246 113356 111226 74047 46540

Americas 453 274 784 475 315 1392 622 803 1442 688

Asia 133 81 201 184 89 257 186 101 54 259

Europe 96 0 5 202 56 14 25 37 99 33

Oceania 1245 0 87 62 0 59 111 99 141 101

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Figure 11: Export volumes of Nitrogen, Phosphorus, Patassium (NPK) fertilzers to the world

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Angola 192 641 695 4908 0 20 946 5138 4040 234

Democratic Republic of the Congo 1405 1216 16 261 2837 1570 1381 1489 2524 2146

Malawi 65233 17844 56163 31420 40460 12976 111 200 6072 212

Mozambique 2467 2461 4756 2549 2878 4500 1212 391 644 3114

Zambia 52409 76664 64140 97802 61773 73284 65848 55449 22770 8594

Zimbabwe 60444 68777 71952 62893 67605 53790 43795 48142 37816 31283

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Figure 12: Export volumes of Nitrogen, Phosphorus, Potassium (NPK) to SADC

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Exports to Malawi were also from a high base during the first half of the ten year period (2005-2009)

under observation attaining a peak in 2005 at approximately 65 233 tons. There was a 62.3%

decrease in export volumes of NPK fertilizers from South Africa to Zambia in 2014 as compared to the


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 2005 and 2014 Exports to Africa were from a

high base during the first half of the ten year period (2005-2009) under review attaining a peak in 2006

at approximately 24 880 tons while exports to Europe were only active between 2009 and 2010 of the

period under observation. There was a 7.5% decline in export volumes of potassium chloride from

South Africa to Africa in 2014 as compared to the 2013 marketing season.


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

SADC region over the past decade. Export volumes of potassium chloride from South Africa to SADC

went mainly to Zimbabwe, followed by Zambia and Angola. Exports to Zimbabwe were from a high

base during the first half of the ten year period (2005-2009) attaining a peak in 2006 at approximately

22 595 tons. Export volumes of potassium chloride to Zimbabwe experienced a dramatic decline

between 2007 and 2014 to low volumes of about 619 tons. Exports to Zambia attained a peak in 2007

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Africa 23177 24880 19766 9551 21831 8221 11208 1542 9377 8673

Europe 0 0 0 0 15 1000 0 0 0 0

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Figure 13: Export volumes of Potassium Chloride to the world

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at approximately 7933 tons. There was a 220% increase in export volumes of potassium chloride from

South Africa to Zimbabwe in 2014 as compared to the 2013 marketing season.


6.5 Potassium Sulphate

Figure 15 shows export volumes of potassium sulphate from South Africa to the world between 2005

and 2014.


2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Angola 0 0 0 178 0 0 300 336 8268 4118

Mozambique 81 0 61 1507 116 43 473 261 90 256

United Republic of Tanzania 500 0 0 0 1512 1008 0 0 0 0

Zambia 4160 2055 7933 35 7044 3808 7699 2 383 875

Zimbabwe 17883 22595 11759 7583 1575 2186 2688 782 619 1981

0

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Figure 14: Export volumes of Potassium Chloride to SADC

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Africa 4529 10559 8291 3774 3316 2378 4585 2147 3339 2366

Europe 0 0 0 0 762 68 0 0 0 0

0

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Figure 15: Export volumes of Potassium Sulphate to the world

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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 volumes of potassium sulphate to Africa were

from a high base during the first half (2005-2009) of the ten year period under review attaining a peak in

2006 at approximately 10 559 tons. During the second half of the same period (2010-2014) under

review, export volumes of potassium sulphate to Africa reached a maximum of approximately 4 585

tons in 2011. Europe only managed to import potassium sulphate from South Africa in 2009 and 2010

at an export quantity of 68 and 762 tons respectively. There was a 29.1% decline in export volumes of

potassium sulphate from South Africa to Africa in 2014 as compared to 2013 marketing season.

Figure 16 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 minimal exports to Mozambique and Malawi. On average, South Africa exported

3 657 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 10 020 tons. During the

second half of the ten year period (2010-2014), exports of potassium sulphate to Zimbabwe were from

a low base attaining a maximum of about 3 943 tons in 2011. There was an increase of 42.8% in export

volumes of potassium sulphate from South Africa to Zimbabwe in 2014 as compared to 2013 marketing

season.


6.6 Superphosphate

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Malawi 60 84 0 0 0 790 150 3 7 32

Mozambique 3 1 26 27 0 98 0 348 656 25

Zimbabwe 3720 10020 7889 3664 1840 423 3943 1619 1424 2033

0

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Figure 16: Export volumes of Potassium Sulphate fertilizer to SADC

18

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

the past decade. The major export market for superphosphate fertilizer to the world was mainly Africa,

followed by minimal export quantities to Europe and Americas. On average, South Africa exported 6

760 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 (2005-2009)

attaining a peak in 2005 at export quantity of approximately 19 397. South Africa only managed to

export superphosphate fertilizer to the Americas and Europe in 2005 at approximately 6 630 and 9 226

tons respectively. There was a 111.3% increase in export quantity of superphosphate fertilizer from

South Africa to Africa in 2014 as compared to 2013.


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

18 below.

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Africa 19397 18712 305 577 10732 6109 4541 1345 1889 3992

Americas 6630 0 0 0 0 0 0 0 0 0

Europe 9226 0 0 0 0 0 0 0 0 0

0

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Figure 17: Export volumes of Superphosphate fertilizer to the world

19


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

minimal exports to Malawi and Mozambique. On average, South Africa exported 2 040 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 (2010-2014)

attaining a peak in 2010 at approximately 5 817 tons. Exports to Malawi and Mozambique were very

low and not more than 700 tons per annum. There was a 125.5% increase in exports of

superphosphate fertilizers from South Africa to Zimbabwe in 2014 as compared to 2013.

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 605 499 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

(2005-2009) attaining a maximum of 560 634 tons in 2007 while the imports were from a high base

during the second half of the ten year period (2010-2014) attaining a peak in 2014 at an import volume

of approximately 865 743 tons. Imports from Europe and Africa were very intermittent over the same

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Malawi 628 196 114 407 208 223 60 0 0 32

Mozambique 13 150 126 3 25 39 17 205 100 139

Zimbabwe 576 409 0 132 3487 5817 3428 1038 1693 3818

0

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Figure 18: Export volumes of Superphosphate fertilizer to SADC

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ten year period under review. There was a 50.3% increase in import volumes of Urea from Asia into

South Africa during 2014 as compared to 2013.


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 2005 and 2014 marketing season. On average, South Africa imported 262 437 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 231

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

attained a peak in 2012 at approximately 281 851 tons. There was a 21.8% increase in import volumes

of urea fertilizers from Saudi Arabia into South Africa during 2014 as compared to 2013. There was a

10.8% decline in import volumes of urea fertilizers from Qatar into South Africa during 2014 as

compared to 2013 marketing season.

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Africa 2800 5851 3226 6753 889 0 23 0 0 0

Asia 438505 492227 560634 539208 509315 661684 684571 726926 576177 865743

Europe 42808 37731 97146 73859 7615 23031 94295 54818 47606 22824

0

100000

200000

300000

400000

500000

600000

700000

800000

900000

1000000

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Figure 19: Import volumes of Urea fertilizers from the world

21


7.2 Limestone Ammonium Nitrate (LAN)

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

South Africa between 2005 and 2014 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 over the past decade. On average, South Africa imported 79 120 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. There was a 41.6% decline in

import volumes of LAN fertilizers from Europe into South Africa during 2014 as compared to 2013.


2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Qatar 235393 237973 204069 234262 175277 206145 243468 281851 262787 234492

Saudi Arabia 202805 253189 336054 261459 277477 327629 279318 310043 169678 206714

0

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100000

150000

200000

250000

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350000

400000

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Figure 20: Import volumes of Urea fertilizer from Western Asia

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Africa 0 0 0 0 0 0 1811 0 0 0

Americas 0 0 0 13200 0 0 22 0 0 0

Asia 1 0 0 216 200 325 7424 0 3330 2024

Europe 9189 55532 66083 151046 25452 93896 122368 35020 146828 85790

0

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Figure 21: Import volumes of Limestone Ammonium Nitrate (LAN) fertilizers from the world

22

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, followed by Belgium and Germany over the past ten

years. On average, South Africa imported 25 900 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. There was a 9.1% decline in import volumes of LAN

fertilizers from Netherlands into South Africa during 2014 as compared to 2013.


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 36 909 tons of MAP fertilizers

from Europe over the past decade. Imports from Europe into South Africa attained a peak in 2014 at

approximately 73 087 tons, while imports from Asia into South Africa attained a peak also in 2014 at

approximately 95 357 tons. There was 6.9% increase in export volumes of MAP fertilizers from Europe

into South Africa during 2014 as compared to 2013.

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Belgium 2850 42142 35364 20230 17828 12550 14777 7907 11900 6306

Germany 6150 2850 0 970 3150 1370 2122 176 60205 23844

Netherlands 0 10400 11401 0 4474 56429 77610 26937 37572 34181

0

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Figure 22: Import volumes of Limestone Ammonium Nitrate (LAN) fertilizers from European Union

23


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

Europe into South Africa over the past ten years.


The major supplier of MAP fertilizers from Western Europe into South Africa over the past ten years

was the Russian Federation. On average, South Africa imported 27 093 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 (2010-2014) under review attaining a peak in

2013 at approximately 68 378 tons. Between 2005 and 2009, import volumes of MAP fertilizers from

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Africa 21 4000 0 0 0 0 0 42758 12600 1528

Americas 16340 61454 9440 9670 5045 18 0 20913 6037 0

Asia 5105 15928 53613 78542 7270 3852 70898 14227 5502 95357

Europe 19963 39365 5670 5290 24627 14204 56965 61536 68383 73087

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Figure 23: Import volumes of Mono-Ammonium Phosphates (MAP) fertilizers from the world

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Russian Federation 19599 26015 2430 3361 0 13596 56418 61530 68378 19601

0

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Figure 24: Import volumes of Mono-Ammonium Phosphate (MAP) fertilizers from Western Europe

24

the Russian Federation into South Africa were low and not more than 30 000 tons per annum. There

was a 71.3% decline in import volumes of MAP fertilizers from the Russian Federation into South Africa

during 2014 as compared to 2013.

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. On average,

South Africa imported 21 940 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 43 507 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 37.1% decline in import volumes of potassium sulphate from

Europe into South Africa during 2014 as compared to 2013.


Import volumes of potassium sulphate from European Union 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. On

average, South Africa imported 15 618 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

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Americas 23027 29901 24570 13182 20151 20131 21806 32460 3423 3376

Asia 0 50 49 1065 0 2887 5060 5042 3532 34519

Europe 15932 10207 14145 32360 3858 23163 25761 23098 43507 27373

05000

100001500020000250003000035000400004500050000

Imp

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Period (Years)

Figure 25: Import volumes of potassium sulphate fertilizers from various region

25

tons, while imports from Belgium into South Africa attained a peak in 2013 at approximately 13 888

tons. There was a 19.9% decline in import volumes of potassium sulphate fertilizers from Germany into

South Africa during 2014 as compared to 2013.


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.


2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Belgium 5730 2476 1626 1054 2838 12371 1855 7243 13888 3336

Germany 9877 7534 11878 30339 1016 9942 22853 14779 26639 21323

0

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Figure 26: Import volumes of potassium sulphate fertilizers from European Union

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Africa 26 0 0 0 0 800 0 196 285 557

Americas 0 18654 28306 13604 60238 84030 90719 95421 112253 134410

Asia 90721 130887 112725 107050 18910 97564 82728 60744 59270 128413

Europe 107588 106881 114414 150728 60420 87231 92672 93007 102318 118132

0

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Figure 27: Import volumes of potassiun chloride fertilizers from the world

26

The major supplier for potassium chloride fertilizers from the world into South Africa is Europe, followed

by Asia, Americas and minimal import volumes from Africa. On average, South Africa imported 103 339

tons of potassium chloride fertilizers from Europe between 2005 and 2014 marketing seasons. Import

volumes of potassium chloride from Europe into South Africa were from a high base during the first half

of the ten year period (2005-2009) under review attaining a peak in 2008 at approximately 150 728

tons. Imports from Asia into South Africa attained a peak in 2006 at approximately 130 887 tons. There

was a 15.5% increase in import volumes of potassium chloride from Europe into South Africa during

2014 as compared to 2013.

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

Africa over the past ten years. Most of the potassium chloride fertilizers from the European Union into

South Africa were mainly from Germany, followed by very minimal imports from Lithuania over the

same period under scrutiny. On average, South Africa imported 82 326 tons of potassium chloride

fertilizers from Europe between 2005 and 2014 marketing season. Imports from Germany into South

Africa were from a high base during the first half of the ten year period (2005-2009) under review

attaining a peak in 2007 at approximately 110 613 tons. There was a 15.8% increase in import volumes

of potassium chloride fertilizers from Europe into South Africa during 2014 as compared to 2013.


7.6 Superphosphate

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Germany 86295 101629 110613 106987 55885 45254 86321 73785 72535 83960

Lithuania 7017 0 0 9900 98 0 0 16804 0 22220

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Figure 28: Import volumes of potassium chloride from European Union

27

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 23 986 tons of superphosphate fertilizers from Asia between

2005 and 2014 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 2005 and 2007 and again in 2009. There was a 4.7% increase in import volumes of

superphosphate fertilizers from Asia into South Africa during 2014 as compared to 2013.


Import volumes of superphosphate fertilizers from Western 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. On average, South Africa imported 22 010 tons of

superphosphate fertilizers from Israel between 2005 and 2014. 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

(2005-2009), imports from Israel into South Africa were low and not more than 21 000 tons per annum.

There was a 21.9% decline in import volumes of superphosphate fertilizers from Israel into South Africa

during 2014 as compared to 2013.

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Africa 0 0 0 14000 0 7176 3935 11610 1000 2200

Asia 17823 37399 15608 58698 9072 19308 19812 17887 21610 22643

Europe 0 0 1919 288 0 0 500 2700 0 0

0

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Figure 29: Import volumes of superphosphate fertilizers from the world

28


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

Strengths

Financial leverage;

Cost advantages;

Customer loyalty;

Technology; and

Brand name.

Opportunities

Online market;

Financial leverage;

Innovation;

Loosening regulations;

New markets; and

International expansion.

Weaknesses

High debt burden;

Out-dated technology;

Weak supply chain;

Weak management; and

Customer services.

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Israel 17823 37399 15608 51948 6214 17624 19812 17887 20098 15684

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Figure 30: Import volumes of superphosphate from Western Asia

29

Threats

Volatile currency;

Government regulations;

Intense competition;

Volatile revenue; and

Political risk.

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 Specialty fertilizers

TRIOMF road Potchefstroom 2531 North West (SA)

P.O Box 505 Potchefstroom 2520

086 187 4663/ 018 285 1291

[email protected]

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


30

Fertilizer industries

Type of fertilizers

Physical Address

Postal Address

Telephone number

Email address

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 Yara 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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