The Fertiliser and Nitrogen Compounds Industry in South Africa 2021

The Fertiliser and Nitrogen Compounds Industry

South Africa’s fertiliser industry is experiencing a bumper year on the back of rising fertiliser prices and record maize production, which accounts for more than half of all fertiliser consumed in the country. However, there is concern over increasing imports and a decrease in local production. The sector is also faced with the threat of land expropriation and issues such as climate change which could increase the likelihood of drought in future years. Transport costs, electricity supply and exchange rate volatility also affect the sector.

Demand

Fertiliser demand is linked to the performance of the agriculture sector, which was one of the few sectors to experience growth in 2020, following the onset of the pandemic. An increase in a number of crop yields is positive for fertiliser providers. These include maize, wheat and soybeans. Sunflower seed and dry beans crops are however expected to decline.

Opportunities

Government plans to develop state-owned land and has announced that farmers would be able to apply to lease under-utilised state-owned land. To address environmental issues, the industry is focusing on the efficient use of fertiliser and green products, such as the production of green ammonia. The use of advanced efficiency products also presents an opportunity. There is significant potential for agriculture in Africa, and South African fertiliser companies are well positioned to sell into the Southern African region.

Report Coverage

This report focuses on the manufacture, wholesale and retail of fertilisers and nitrogen compounds in South Africa and includes information on the state and size of the sector, its major players, fertiliser and input prices, trade figures, corporate actions and developments, and environmental issues. There are profiles of 35 companies including Omnia and Kynoch, the largest companies in the sector, and Sasol and Foskor which provide inputs to the manufacture of fertilisers. Among other companies profiled are Meridian Agrochemical Company, Peninsula Organics, Kaap Agri and Senwes.