Overall market risk: The commencement of the rains across most countries in West Africa has ushered in the seasonal farming activities for this year. Across the region, various reports indicate Fertilizer availability in sufficient volumes. However, prices on the other hand have continued to be the bone of contention, as they are still decreasing, and in some cases increasing across the region. There are still reports of Agrodealers who still sell products at a higher price, due to the availability of old stocks. Importations are still on going for fertilizers across the region, which is mostly triggered by the attractive decreasing international prices, as most countries are using this window to stock up for the future.
Cote d’Ivoire: With the commencement of the farming season, fertilizer suppliers have been importing and positioning their stocks to meet demand, even though demand is gradually picking up. The continuous availability of old and more expensive stocks is still creating price distortions in the retail market. With over 300,000MT of fertilizer stocks imported so far into the market for this year, it is predicted that prices would either become stable or would likely decrease, in line with the continuous decrease in the international prices. But from all indications, normalcy in fertilizer demand is gradually returning to the market.
Ghana: Contrary to various views that the end of the flagship program Planting for Food and Jobs (PFJ) would result into a jump in the prices of inputs, prices have been relatively stable and even decreasing in some locations in the country. However, the availability of old expensive stocks was still distorting the market due to agrodealers who are not willing to bring down the prices in line with the decreases recorded in the international market. Aside from the issues associated with prices and affordability, fertilizers are available in the market for the season.
In Nigeria, demand for fertilizers is gradually picking up due to the commencement of the rain, despite the unaffordability issues still lingering. The NPK retail market has still not witnessed any significant decrease in prices, due to the lingering volume of carryover stocks in the market which is preventing prices from reducing significantly. The prices of Urea on the other hand, have been reducing in line with the reduction from the factory. There are indications that the new government administration would intervene by introducing some policies and palliatives to ease down prices, especially for NPK’s.
In Togo, the demand for fertilizers has improved, when compared to previous month. The government has arranged to order for 123,500MT of fertilizer which is more than enough to cover for the country’s consumption. The government has yet to set the prices for the season, but fertilizers are still available in the market.
Availability and Affordability: Despite the continuous price fall in the international market, fertilizer prices have been stable or decreasing slightly due to carryover stocks, but they are still not as affordable as it should be, except in Togo, where they have fixed pricing.
Fertilizers have been generally available in most west African countries, as some quantities have been imported but quantity demanded has still not significantly improved. The huge inventory carried into 2023 is still largely responsible for the slow reflection of the decreased prices in the retail market despite the falling prices recorded in the international market.
Distribution: Fertilizer market in West Africa is gradually returning to normal, despite the Russia-Ukraine war still ongoing. All fertilizer ports and borders are open, apart from Nigeria’s northeast area, which continues to restrict fertilizer movement owing to insecurity. Landlocked nations such as Mali and Burkina Faso are using ports in Cote d’Ivoire to import fertilizer.