Overall market risk: In West Africa, the onset of the rainy season has marked the beginning of planting seasons, leading farmers to actively engage in agricultural activities. This increased farming activity has significantly raised the demand for fertilizers, making them essential for boosting crop yields. Consequently, fertilizer sales in the region have surged, reflecting the heightened demand. The increased demand has driven up prices, in addition to the depreciation of some country’s currency making it more expensive for farmers to procure the necessary supplies for their crops. While certain regions are meeting fertilizer demand with ample stocks and stable prices, affordability has become an issue in other areas due to fluctuating exchange rates. Overall, there was adequate supply to meet the rising demand brought on by the rainy season, although prices varied by region.
Benin: The agricultural season has commenced with the arrival of the first rains, leading to increased fertilizer demand in the southern and central regions. Government subsidies have alleviated concerns about accessibility, with over 24 billion FCFA allocated to maintain lower fertilizer prices. Urea is now priced at $25 (15,000 FCFA) per 50 kg bag, and NPK at $28 (17,000 FCFA). Without these subsidies, farmers would have faced higher costs, with urea at $33 (19,500 FCFA) and NPK at $38 (22,500 FCFA). Despite the slow mobilization of stocks, with only 200,000 tonnes available, representing 67% of the forecast, authorities remain optimistic as they expect more shipments soon at the Autonomous Port of Cotonou.
Cote d’Ivoire: The main planting season has begun, marked by the first rains and the start of sowing, which has boosted fertilizer demand among farmers. Anticipating this increase in demand, importers have continued to build up stocks to meet it. In May, approximately 300,000 tonnes of fertilizers were imported into Côte d’Ivoire, according to customs data. Regarding prices, relative stability has been observed, with prices not exceeding $42 (25,000 FCFA) per 50 kg bag for all types of fertilizers. Concerning cotton, attention remains focused on the official announcement of fertilizer prices. In the meantime, current fertilizer prices are $28 (around 17,050 FCFA) for urea and $30 (around 18,100 FCFA) for NPK, providing some predictability for farmers.
Ghana: Despite an ample supply of fertilizers in the country, buyers have struggled to afford the costs due to the ongoing depreciation of the currency against the US dollar. Most fertilizer prices saw only a slight increase in May 2024 compared to previous prices. The Ministry of Food and Agriculture (MoFA) in Ghana has authorized two companies are expected to supply NPK and urea fertilizers on behalf of the World Bank. For the 2024 planting season, approximately 31,200 bags of 50 kg NPK and 14,000 bags of 50 kg urea fertilizer have been distributed to smallholder farmers in the northern region. This distribution is part of the EU, FAO, and GoG support for enhancing food security in the country.
Liberia: The demand for fertilizers and other farming inputs has surged during the rainy season as farmers aim to boost yields for this year’s farming season. However, there has been minimal or no government intervention regarding border regulations and subsidies to support farmers and facilitate business for agro-dealers. This lack of support has led agro-dealers to reduce their fertilizer prices compared to the stable prices in the last two months. Their strategy is to minimize profit margins while clearing old stock to make room for new supplies for the upcoming farming seasons. Currently, fertilizers are more readily available and priced lower than in previous months. This increased availability allows farmers to take advantage of the slight price reduction to purchase more for the current and upcoming months.
Nigeria: Fertilizer prices have fluctuated significantly due to the volatility in the dollar-to-naira exchange rate. Despite adequate availability of fertilizer products in the market, the primary challenge lies in their affordability, particularly for smallholder farmers. These farmers are finding it increasingly difficult to purchase the necessary fertilizers due to the high costs involved. The earlier optimism seen among farmers, when prices began to decrease in the previous month, has now been overshadowed by recent price hikes. This sudden price increase has dashed hopes and created frustration among farmers who were anticipating continued reduction or stability of fertilizer prices in the market. Fertilizer sales in May 2024 have been moderately high compared to April 2024.
Sierra Leone: May marks the second month of the rainy season, with temperatures leveling up for farming operations, which are generally kicking off. Accordingly, the fertilizer demand has gradually increased and is expected to continue rising throughout the wet season as farmers engage massively in cultivating numerous crops. During this period, fertilizer dealers across the country anticipate high demand from small-scale and large-scale cash crop farmers in the North and South, as well as from vegetable and rice farmers. Fertilizer prices are expected to remain stable or see a moderate increase in some regions due to the rising demand. However, prices are relatively irregular across the country, being generally lower in the Northern province compared to the Western Area, where prices remain higher.
Togo: The agricultural season began in May 2024, particularly in southern Togo, where planting is intensifying across all farms. In preparation for this season, the state had mobilized 103,250 tonnes of fertilizers in April. In May, an additional 2,718 tonnes were added, bringing the total to 105,968 tonnes of fertilizers, distributed across 230 dedicated stores throughout the country. Anticipating the resumption of agricultural activities, 86,628 tonnes of fertilizers out of the total were allocated to the southern region, while 19,341 tonnes were sent to the north. In addition to the volumes mobilized by the state, the private sector reported importing 7,250 tonnes of fertilizers. Although agricultural activities have resumed and the supply is sufficient, demand remains low, with only 6,054 tonnes reported as purchased in May.
Availability and Affordability: In May, there were no reports of fertilizer shortages across the region, as most countries indicated availability following the onset of the planting season. However, the fertilizer markets in West Africa are experiencing rising prices in some countries while in some other countries, prices seem stable. This price increase is driven by the heightened demand due to the ongoing rainy season. In response to these rising costs, some governments are intervening by providing subsidies to mitigate the impact on farmers. Despite these efforts, high prices remain a significant concern. Many farmers have expressed worries that the high prices are limiting their ability to purchase the required quantities of fertilizer needed for their crops.
Distribution: The importation, transport, and logistics of fertilizers have generally occurred without disruption or restrictions at the borders and within most countries in West Africa. In May, significant volumes of fertilizers were successfully transported through entry points and distributed to Mali and Burkina Faso. Most places in Nigeria face no restrictions, except for the Northeast region, where security issues restrict transportation. The National Port Authority (NPA) plays a crucial role, in ensuring efficient logistical arrangements and quick clearance times for fertilizers with proper documentation in the West Africa region.