Published: 18 September 2017

The Zimbabwe Fertiliser Manufacturers Association says Government should ban finished fertilizer imports as manufacturers can produce enough to meet demand if fully supported.

ZFMA president Mr Tapuwa Mashingaidze, who is also the chief executive officer of fertilizer manufacturer Chemplex Corporation, said Government should ban the importation of fertilisers.

"The fertiliser industry is generally operating at around 60 percent of its capacity but could increase if more foreign currency is secured and more of the market buys local fertiliser and less finished fertilisers are imported into the country," said Mr Mashingaidze.

"We also appeal that there be import ban on NPK fertilisers (compounds and blends) because the local industry has excess capacity to produce and supply all local requirements for the Command scheme, the Presidential scheme and the commercial market. All the NPK fertilisers for these schemes should be supplied from the local fertiliser industry," he added.

Fertiliser manufacturers have said that for Zimbabwe to meet total demand of fertilizer, about $120 million in foreign currency was required. Producers are facing dressing shortfall estimated to be 70 000 tonnes for the 2017/18 season, which needs to be imported.

The fertiliser manufacturers believe that only top dressing fertiliser import should be allowed, with AN from Sable Chemicals exhausted, and this should be co-ordinated through the local fertiliser industry.

The Zimbabwe fertiliser industry is made up of 10 companies competing to supply different segments of the market that include the  Command Programme, the Presidential Input Scheme and the Cotton  Input Scheme , which are all sponsored by Government, as well as privately funded contract schemes for tobacco and other crops.

In the last two years, significant fresh investments have been made into increase the capacity of fertilizer blending plants, which has taken the country's annual output capacity to 1,2 million tonnes for NPK compounds and blends and 90 000 tonnes for AN (top dressing) assuming enough raw material inputs are available.

The local fertiliser manufacturers have more than enough manufacturing capacity to meet the effective demand of 400 000 tonnes.

Key issues to ensure sufficient supply include timeous procurement of adequate volumes of raw materials to enable utilisation of all the installed capacity taking into account the fact that lead times for these materials are typically three months.

"Stock holding by members of the Zimbabwe Fertilizer Manufacturer's Association right now is around 120 000 tonnes of all types of fertilisers including both basal compounds and top dressing. The current challenge on production capacity is on AN, which is limited to 90 000 tonnes per annum.

"However, the re-capitalisation project underway on the AN plant will rump up production to 150 000 tonnes in the 2018/19 and to 240 000 tonnes two years later," said Mr Mashingaidze.

"Assurance of supply requires that raw materials being used right now be constantly replenished through ongoing provision of nostro allocations or forex. Much of the raw materials being used are being drawn from supplier credit arrangements under Consignment Management Stocks which have to be paid for in forex before the fertilisers can be released."
- bh24

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