Zim imports 90 000 tonnes of fertiliser

Zim imports 90 000 tonnes of fertiliser | The Herald 22 October 2014

Zimbabwe has imported an estimated 90 000 metric tonnes of fertiliser for the upcoming 2014 /15 farming season as local production continues to be augmented by imports while generally the market continues to be subdued in line with the general economic outlook. The projected demand for fertiliser for the 2014 /15 season is expected to remain flat at 350 000 metric tonnes the same as that of the previous season.

Total available fertiliser from both local industry and traders for the season is 381 500MT and this is in excess of the projected 200 000MT still to be supplied. Industrial development Corporation group public relations advisor Mr Dereck Sibanda said of the projected demand an estimated 150 000MT has already been supplied leaving a balance of 200 000MT.

“For top dressing, supply from Sable Chemicals which is estimated at 80 000MT for the year, will need to be augmented by imports. Most of the imports have already been triggered with at least an estimated 90 000MT having been received in the country.

“Local fertiliser industry is well prepared to support the forth coming 2014 /15 summer season. Projections are that due to the prevailing liquidity challenges the demand for 2014 will be around 350 000MT, which is a stand still position from 2013,” said Mr Sibanda.

“In addition to the excess, Government is said to be negotiating a parcel of 50 000MT from China earmarked for this season. The contract schemes that usually increase sales in the summer season are not forth coming due to various issues”

He said when importers are factored in there will be an oversupply for the coming summer season and in addition to the stocks and anticipated production the traders are holding a lot of stocks.

Mr Sibanda said while the quantity held is difficult to ascertain discussions with the Ministry of Agriculture, Mechanisation and Irrigation Development to which all companies send weekly declarations of their stockholding point to 159 000MT.

Mr Sibanda said the oversupply position has resulted in a downward revision of prices on popular products as companies try to mop up the few dollars circulating in the economy.
He said Ammonium Nitrate prices have gone down from $700 per MT to $680 nationwide and Compound D has remained stable at $620 per MT ex-factory but nationwide it has gone down from an average of $640 to $620.

The split between basal and top dressing will be roughly 50:50 and in terms of supply ZFC and Windmill can supply all the basal fertiliser.
He said maize contract schemes are not attractive to millers because the millers consider the gazetted price of $390/MT too high while soya bean contractors claim they have no financial capacity to contract but will buy the product instead.

Mr Sibanda said for the cotton market unresolved issues of side marketing coupled with low prices have led to no meaningful contracting activity yet.
“Thus most farming activities for summer will be financed by own funds and some banks. The latter have reduced their funding significantly due to side marketing,” said Mr Sibanda.