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.
Introduction
This report focuses on the manufacture, wholesale and retail of fertilisers and nitrogen compounds in South Africa. The value of fertiliser purchases, according to Stats SA, was R18.2bn in 2019, the most recent year for which figures are available. The 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 the increasing growth in imports and decrease in local production. The sector is also faced with the threat of land expropriation and climate change which could increase the likelihood of drought in future years. To address environmental issues, the industry is focusing on the efficient use of fertiliser and green products, such as the production of green ammonia.
Strengths
• Increased investments in production facilities for zinc and phosphorus.
• Strong enforcement by competition authorities.
• Well-established fertiliser industry with high levels of capital investment.
Weaknesses
• Significant increase in imports since 2017.
• Technological developments in the sector occur largely outside South Africa.
Opportunities
• Advanced efficiency products such as control release, slow release, sulphur-coated products, water soluble powders, nitrification inhibitors and urease inhibitors.
• Government’s plan to develop state-owned land.
• Growing population needing food security will contribute to high demand for end-products.
• Small-scale farming is now higher on the policy agenda, and government has a range of projects and programmes to support development.
• The huge potential for agriculture in Africa, and South African fertiliser companies are well positioned to sell into the Southern African region.
Threats
• Climate change, particularly the increased risk of drought.
• Costly and unreliable electricity supply.
• Exchange rate volatility.
• Increasingly stringent environmental, health and safety regulations.
• Lack of skilled chemical and mechanical engineers.
• Land expropriation without compensation.
• Rising input costs, mainly due to increasing transport and electricity prices.
• The development of new technologies that will result in decreased fertiliser use.
Outlook
The outlook for the fertiliser industry is positive. The Fertiliser Association of South Africa CEO Pieter Haumann says the combination of high prices and high crop yields, together with an expected bumper maize crop in 2021, make the fertiliser industry one of South Africa’s few booming sectors currently. “We’re in the best situation we’ve been in years,” he says. FNB Agribusiness head of information and marketing Dawie Maree says opportunities for the use of fertilisers for long-term crops (such as citrus and nuts) are very attractive given the growth in these subsectors. The International Fertilizer Association anticipates a 2% increase in global fertiliser use to 193.5Mt in 2020/21 and a 1% increase in 2021/22. It said while the lingering pandemic will probably not affect fertiliser logistics significantly, the uneven nature of global economic recovery could affect consumer food demand, government budgets, farmers’ input purchasing behaviour and their financing conditions. However, Yara said in its Q1 2021 report that while recent industry consultant projections show higher nitrogen supply growth in 2021, there has been limited new capacity which has started operating, adding that the risk of project delays is stronger than normal due to the pandemic.
Full Report
R 6 500.00(ZAR) estimated $350.86 (USD)*
Industry Landscape
R 4 550.00(ZAR) estimated $ 245.61 (USD)*
Industry Organograms
Historical Reports
The Fertiliser and Nitrogen Compounds Industry in South Africa 2019-04-02
R 1 900.00(ZAR) estimated $102.82 (USD)*
View Report Add to CartThe Fertiliser and Nitrogen Compounds Industry in South Africa 2017-05-26
R 1 900.00(ZAR) estimated $102.56 (USD)*
View Report Add to CartThe Fertiliser and Nitrogen Compounds Industry in South Africa 2015-10-28
R 1 900.00(ZAR) estimated $102.82 (USD)*
View Report Add to CartTable of Contents
[ Close ]PAGE | ||
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1. | INTRODUCTION | 1 |
2. | DESCRIPTION OF THE INDUSTRY | 1 |
2.1. | Industry Value Chain | 3 |
2.2. | Geographic Position | 4 |
3. | SIZE OF THE INDUSTRY | 5 |
4. | STATE OF THE INDUSTRY | 8 |
4.1. | Local | 8 |
4.1.1. | Trade | 12 |
4.1.2. | Corporate Actions | 18 |
4.1.3. | Regulations | 18 |
4.1.4. | Enterprise Development and Social Economic Development | 20 |
4.2. | Continental | 21 |
4.3. | International | 24 |
5. | INFLUENCING FACTORS | 27 |
5.1. | Coronavirus | 27 |
5.2. | Economic Environment | 27 |
5.3. | Technology, Research and Development (R&D) and Innovation | 28 |
5.4. | Environmental Concerns | 29 |
5.5. | Labour | 31 |
6. | COMPETITION | 32 |
6.1. | Barriers to Entry | 33 |
7. | SWOT ANALYSIS | 33 |
8. | OUTLOOK | 34 |
9. | INDUSTRY ASSOCIATIONS | 35 |
10. | REFERENCES | 35 |
10.1. | Publications | 35 |
10.2. | Websites | 36 |
APPENDIX 1 | 38 | |
Summary of Notable players | 38 | |
ORGANOGRAM - THE MANUFACTURE OF FERTILISER AND NITROGEN COMPOUNDS (ORGANIC) | 46 | |
ORGANOGRAM - THE FERTILISER AND NITROGEN COMPOUNDS (NON-ORGANIC) | 48 | |
ORGANOGRAM - WHOLESALE OF AGRICULTURAL PRODUCTS AND FERTILISER | 50 | |
COMPANY PROFILES | 53 | |
AQUASOL AGROCOM SOUTHERN AFRICA (PTY) LTD | 53 | |
ATLAS ORGANIC FERTILISERS (PTY) LTD | 55 | |
AVISON (PTY) LTD | 57 | |
BALL STRAATHOF (PTY) LTD | 59 | |
BOSVELD PHOSPHATES (PTY) LTD | 61 | |
CULTERRA (PTY) LTD | 63 | |
ECOSOIL (PTY) LTD | 65 | |
FARMERS AGRI-CARE (PTY) LTD | 67 | |
FLORAHAVEN LANDSKAPKONTRAKTEURS SA CC | 69 | |
FOSKOR (PTY) LTD | 70 | |
GAVILON SOUTH AFRICA (PTY) LTD | 74 | |
GROMOR (PTY) LTD | 76 | |
GUANO SALES (CAPE) (PTY) LTD | 78 | |
KAAP AGRI LTD | 79 | |
KELP PRODUCTS (PTY) LTD | 83 | |
KYNOCH FERTILIZER (PTY) LTD | 85 | |
LAEVELD AGROCHEM (PTY) LTD | 88 | |
MERIDIAN AGROCHEMICAL COMPANY (PTY) LTD | 90 | |
MULTI GREEN (PTY) LTD | 92 | |
NWK LTD | 94 | |
OMNIA GROUP (PTY) LTD | 99 | |
PENINSULA ORGANICS CC | 102 | |
PLANT BOUTIQUE (PTY) LTD | 103 | |
PREMIER FISHING SA (PTY) LTD | 105 | |
RECARBON GROUND TRADING (PTY) LTD | 108 | |
ROLFES AGRI (PTY) LTD | 110 | |
SASOL SOUTH AFRICA LTD | 112 | |
SENWES LTD | 116 | |
SNYMAN BUSINESS TRUST | 132 | |
SOLVAY POLYMERS AND CHEMICALS SOUTH AFRICA (PTY) LTD | 134 | |
STANLER FARMS (PTY) LTD | 136 | |
TALBORNE ORGANICS FRANCHISE GROUP (PTY) LTD | 138 | |
TURFNETTE (PTY) LTD | 140 | |
VIEWPOINT FARMING CC | 142 | |
YARA AFRICA FERTILIZER (PTY) LTD | 143 |