This report focuses on the manufacture, wholesale and retail of fertilisers and nitrogen compounds in South Africa. It examines current conditions including the recent drought which resulted in reduced demand for fertilisers, new investments and technological developments in the industry. The report profiles 41 companies including blending companies such as Atlas Organic Fertilisers (Pty) Ltd and Aquasol Nutri as well as Gavilon South Africa (Pty) Ltd which imports and supplies fertilisers to co-operatives, an important source of fertiliser sales. Also profiled is Premier Food and Fishing which listed on the JSE in 2017 and is one of the few companies in South Africa to produce fertilisers from composted ocean fish and crustaceans.
The Fertiliser and Nitrogen Compounds Industry
In South Africa and other developing markets the supply of fertilisers is increasingly linked to developmental objectives of ensuring food security and supporting and growing the small-scale farming sector. The estimated value of the South African fertiliser market is approximately R10bn. The industry supplies around 2 million tons of fertiliser products to the local market, with the maize industry consuming between 40% and 50% of total production.
South Africa has become a net importer of fertilisers. Although a range of large, medium and small players is involved in the sector, research by the African Centre for Biodiversity shows that three players dominate the South African fertiliser industry: Omnia Fertiliser with market share of 45%, followed by Kynoch Fertiliser and Profert Holdings with an estimated 15% each. Foskor is the only producer of phosphates and phosphoric acid and Sasol remains the largest producer of chemical inputs into fertiliser but is no longer allowed to sell the end-product. This follows Competition Commission intervention in an attempt to ensure competitive pricing in the manufacture of fertilisers.