Overall market risk: As the rainy season approaches its peak across West Africa, the demand for fertilizers has generally increased, invigorating the markets. However, reports from most countries indicate that the current demand levels are still not as high as those seen in similar periods in the past. The vibrant market dynamics are influenced by a variety of factors, with some countries experiencing stable market conditions while others face increased prices. These price hikes are primarily driven by domestic issues such as currency fluctuations, which impact the affordability and accessibility of fertilizers for farmers.
Despite these economic challenges, fertilizer products have remained relatively available across West Africa. This is noteworthy, given the region’s diverse political landscape, where some countries have faced significant instability, including coups d’état. Remarkably, even in these politically unstable environments, there have been no reports of fertilizer scarcity, which highlights the resilience and adaptability of the supply chains. The overall supply of fertilizers has been adequate to meet the rising demand, and to ensure that agricultural activities can continue uninterrupted. This steady supply is crucial for supporting the agricultural sector, which is a significant part of the economy in many West African countries. Farmers rely on fertilizers to enhance crop yields and ensure food security, making the availability and affordability of these products a critical issue.
Benin: In July 2024, agricultural activities intensified, leading to increased fertilizer demand, particularly for cotton in the north and central regions, and rice and maize in the south. Despite the high demand, there have been no shortages, as the supply has met farmers’ needs. Authorities have warned against the illegal export of subsidized fertilizers from Benin. The government, having spent over CFA 24 billion on subsidies, allows farmers to buy Urea for $25 and NPK for $28 per 50kg bag, compared to higher unsubsidized prices. Border security forces have been instructed to apprehend offenders involved in fraudulent exports.
Ivory Coast: In July, agricultural activities have surged, increasing fertilizer demand. Distributors and retailers maintain steady supplies, and importers have stockpiled in anticipation of peak use. In June 2024, Côte d’Ivoire received 30,000 MT of fertilizer, totaling 370,000 MT for the first half of the year, meeting consumption forecasts. This stability keeps prices steady, with July prices for Urea, NPK 0-23-19, and NPK 15-15-15 lower than in May. In the cotton sector, planting continues with last year’s fertilizer prices still in effect. Overall, the market remains stable with consistent supply and pricing.
Ghana: Fertilizer prices have remained relatively stable month on month. January to date, over 300,000 MT of fertilizer have been imported into the country, surpassing the total amount imported in 2023. In July, particularly, there has been no change in the retail prices of Ammonium Sulphate, Urea and NPK 23-10-5. Ammonium Sulphate was priced at GHS 288.00 per 50kg bag in June 2024 and stayed at that level in July 2024. The average price of Urea has likewise stayed constant at GHS 420.77 per 50 kg bag.
Liberia: Since the beginning of July, heavy rains have caused flooding in central Monrovia and surrounding areas, affecting crops and disrupting logistics for agro-dealers, though transportation costs have not significantly increased. Despite this, there is still adequate supply of fertilizers in Liberia, with prices remaining stable due to a consistent supply-demand trend over the past few months. The general market price of fertilizers has not changed from last month, with an estimated 500 to 1200 MT available. NPK 15-15-15 and NPK 17-17-17 are the main fertilizers used, averaging 8,775 Liberian Dollars (LD) per 50 kg bag. TJAL and MaBendu maintain their prices at 45 USD per 50 kg bag of NPK and Urea, while Aims prices them at 40 USD, reflecting a stable market environment that helps farmers plan and budget effectively.
Nigeria: In July 2024, heightened farming activities increased engagements between farmers and agrodealers, boosting fertilizer sales and ensuring steady business operations. Continuous production efforts have stabilized the market, preventing potential shortages. Despite adequate availability, affordability remains a challenge, leading to increased competition as farmers seek cost-effective yet quality fertilizers. This has resulted in a diverse range of brands and formulations in the market. Fertilizer prices saw a slight increase, particularly for NPK products, due to heightened farming activities, high production costs, inflation, transportation expenses, and naira instability. The ex-factory price of Urea decreased from ₦30,000 to ₦29,500 per 50 kg bag, causing varied retail prices based on older stock prices, while NPK 20-10-10 went up by 2.6%, from June to July.
Sierra Leone: In the reporting month, Sierra Leone’s inflation dropped to 35.84% from 42.59% in June, marking an 18% reduction over the past eight months. The exchange rate remained stable at Nle 22.5440/$, and overall commodity prices were stable in July. However, fertilizer prices saw slight increases in the Western, Northern, and Eastern Provinces, driven by high demand during the peak farming season, while the Southern Province reported no price changes. The wet season’s heavy downpours have sustained this demand, expected to continue into August. Without government subsidies during the peak season, demand from retailers and farmers has risen, leading to higher projected fertilizer prices. Normally, subsidies at this time disrupt the usual distribution flow from wholesalers to retailers and farmers.
Togo: Maize planting continues in the north, while in the south, maize is in the heading phase. The government provided 113,596 MT of fertilizer, exceeding the forecast of 85,000 MT, aiding smooth planting. Fertilizer market transactions doubled from June to July, rising from 20,910 MT to 40,084 MT. This trend is expected to persist in August in the north as crops flower, while fertilizer use will decrease in the south as crops mature. Subsidized fertilizer prices remain unchanged from two years ago. Urea and NPK 15-15-15 for food crops are $30 per 50kg bag, and cotton-specific fertilizers are $23 per 50kg bag. On the open market, NPK 4-2-2 with 63% organic matter is sold at $30 per 50kg bag.
Senegal: The agricultural season is progressing with a focus on ensuring effective fertilizer availability. Despite minor delays in some areas, stakeholders are optimistic about distribution of inputs. Challenges include managing input storage and monitoring. A shortage of NPK 15-10-10 persists in Kolda, Tambacounda, and Kédougou, but is expected to be resolved soon. Subsidized fertilizer prices range from CFA 6,500 to CFA 12,500 for NPK and CFA 10,000 for Urea, with free phosphate. Organic fertilizers are sold between 1,000 and CFA 1,500 per unit. On the open market, Urea averages CFA 18,000 (USD 30.60). NPK 6-20-10, NPK 15-15-15, and NPK 20-20-20 cost CFA 15,667 (USD 26.13), CFA 18,125 (USD 30.81), and CFA 45,000 (USD 73.48) respectively for 25 kg and 50 kg bags. Various sulfates are available in 25 kg bags priced between CFA 10,125 (USD 17.21) and CFA 70,000 (USD 116.18).
Availability and Affordability: With the rainy season now at its peak in some West African countries, the demand for fertilizers has increased, though not as much as expected compared to previous similar periods. Fertilizers are generally available, with moderate availability experienced in Ghana and Benin. Some countries are experiencing price increases due to heightened demand. Affordability remains a critical issue across West Africa, as the instability of most local currencies is contributing to the rise in fertilizer prices.
Distribution: In July, fertilizer importation, transportation, and logistics proceeded smoothly across West Africa, with minimal disruptions or border restrictions. Significant volumes of fertilizers were successfully transported through entry points and distributed to Burkina Faso and Mali. In Nigeria, logistical operations remained largely unhindered, except in the Northeast region, where security challenges-imposed transportation restrictions. The National Port Authority (NPA) played a pivotal role in facilitating efficient logistical operations and expediting clearance processes for fertilizers across West Africa, contingent upon proper documentation.