Overall market risk: With the rains fully established in most West African countries, the farming season and fertilizer markets are once again vibrant, marked by an observable increase in demand. However, despite this recent uptick, the current demand still falls short of previous years when compared to the same time frame. The primary factor driving this reduced demand is the increased cost of fertilizer products month on month, which has impacted affordability. The price increase varies from country to country, particularly in private sector dominated markets. Additionally, currency devaluation has exacerbated the situation. Whilst prices may not have increased significantly in dollar terms, they have risen in local currencies from country to country. Despite these challenges, fertilizer products have been relatively available across West Africa, with no reports of scarcity, even in countries that experienced political instability such as coups d’état. Overall, there has been an adequate supply to meet the rising demand despite the price challenges.
Benin: The Beninese authorities have assured stakeholders that stocks of Urea, NPK and SSP are in line with initial forecasts, and that supplies are being delivered throughout the country. However, they are concerned about the fraudulent export of subsidized fertilizers out of the country, following reports that some agricultural players are involved in these illegal practices.
Cote d’Ivoire: In June, heavy rains increased planting activity, leading to a predictable rise in fertilizer demand. Importers responded by mobilizing stocks, resulting in 300,000 tons of fertilizer imported into Côte d’Ivoire, meeting 100% of forecasts based on the past five years’ average consumption. Continuous stock mobilization and declining international prices stabilized the market, ensuring supply met demand. Local prices in June were lower than in May, with urea at $35, NPK 0-23-19 at $33, and NPK 15-15-15 at $37 per 50 kg bag. In the cotton sector, official fertilizer prices are awaited, with current prices at $28 for urea and $30 for NPK. Overall, stable supply and falling prices-maintained market stability, meeting the rising demand due to the rainy season.
Ghana: Farmer registration continues, and fertilizer distribution is active across all regions, particularly in the south. The country has imported 291,032 MT of fertilizers, accounting for about 65% of the annual import target, indicating strong domestic demand for agricultural inputs. In June, most fertilizer prices slightly decreased compared to May, except for NPK 23-10-5, which saw a 1% increase. As of June 2024, most fertilizer prices have slightly decreased compared to May, except for NPK 23-10-5, which saw a marginal increase: Ammonium Sulphate: Decreased by 1% from GHS 292.00 to GHS 288.00, Urea: Dropped by 3% from GHS 433.08 to GHS 420.77, NPK 23-10-5: Increased by 1% from GHS 446.82 to GHS 450.71.
Liberia: This month, the agro-dealers face a medium market risk as farmers strive to optimize yields amid hopes for government subsidies on high fertilizer prices. Despite a recent average price drop of $5, stricter entry requirements enforced by customs and revenue authorities are complicating the movement of large fertilizer shipments within the country, aimed at funding agricultural incentives. Moreover, poor road conditions between Côte d’Ivoire and Liberia, and Guinea and Liberia, are contributing to higher fertilizer costs. As the main farming season progresses, fertilizers are accessible nationwide but remain prohibitively expensive for farmers due to both purchase costs and transportation expenses. The price this month is an average of 8,775 Liberian dollars (LD). Transactions largely occur in USD due to the high exchange rate of 1 USD to 195 LD, resulting in an increase of 1,275 LD in local currency prices compared to last month. Among major agrodealers, two reduced prices from 50 USD to 45 USD in June, while the third maintained a price of 40 USD, reflecting varying market strategies amidst current economic challenges.
Nigeria: Nigeria is currently experiencing heavy rainfall across most regions, particularly in the Northeast and Northwest, which has greatly boosted agricultural activities. Farmers are actively engaged in farming due to favorable weather conditions, leading to an increased demand for fertilizers nationwide as the rainy season progresses. To meet this demand, blending plants are scaling up production, especially for NPK fertilizers. Despite this, affordability remains a challenge for many farmers, limiting the volume they purchase. High fertilizer prices persist due to production costs, transportation expenses, and currency fluctuations. The retail market reflects growing competition among fertilizer brands, driven by farmers seeking quality products at affordable prices. In June, prices generally increased, influenced by rising demand, production costs, inflation, transportation expenses, and currency instability. However, there was a slight reduction in the ex-factory price of Urea towards the end of the month, which may stabilize or reduce prices in subsequent periods. The average retail prices of urea, NPK 15-15-15, and NPK 20-10-10 saw increases, reflecting economic pressures and an exchange rate of $1 to ₦1,490 in June 2024, up from ₦1,383 in May 2024.
Sierra Leone: In June 2024, fertilizer sales in Sierra Leone saw a notable uptick compared to the previous month, particularly in the Western Area and among key suppliers in the North. This increase coincides with the peak of the rainy season, facilitating favorable farming conditions across the country. Anticipated demand growth spans small and large-scale cash crop farmers in the North and South, as well as vegetable and rice growers nationwide. Prices for fertilizers vary regionally, with higher costs observed in the Western Area compared to the Northern province, where prices are notably lower. Sierra Leone relies entirely on imported mineral fertilizers, sourced from neighboring regions and further abroad, influencing pricing dynamics linked to import costs, transportation, and distribution logistics. Throughout June, fertilizer prices remained stable, with major importers maintaining consistent prices for Urea, NPK, and DAP fertilizers. However, price variations exist among importers, with Urea prices ranging from Nle 1,200 ($54) to Nle 1,500 ($69) per 50kg bag. Average prices per ton include Nle 26,000 ($1,097) for Urea, Nle 30,000 ($1,266) for NPK 15:15:15, and Nle 20,000 ($844) for DAP.
Togo: In June 2024, widespread rainfall across Togo has facilitated robust crop establishment activities, with distinct stages observed in different agro-ecological zones. Southern regions are experiencing full bloom, while the north witnesses sowing and emergence phases. To support the ongoing agricultural season, the government had originally planned for 85,000 tons of fertilizer but mobilized 113,596 tons by mid-June, surpassing expectations. Distribution favored the south with 94,882 tons and allocated 18,714 tons to the north. Demand for fertilizer surged from 6,054 tons in May to 20,910 tons in June, reflecting increasing agricultural activities expected to continue in the coming months. Subsidized fertilizer prices set two years ago remain unchanged, with urea and NPK 15-15-15 priced at $30 (18,000 FCFA) per 50kg bag for food crops, and $23 (14,000 FCFA) for cotton-specific blends like NPK 12-20-18 +5S +1B and urea. On the open market, NPK 4-2-2 with 63% organic matter is prevalent, also priced at $30 (18,000 FCFA) per 50kg bag.
Senegal: In June 2024, Senegal’s agricultural season commenced with efforts from both private and public sectors to procure fertilizers following subsidy price announcements by MASAE. However, delays in fertilizer distribution were reported in certain regions like Kolda, Tambacounda, and Kédougou, where popular varieties such as NPK 15-10-10 were unavailable, leaving only urea accessible in Ziguinchor. In the free market, a variety of fertilizers remained available with stable prices. Subsidized urea was priced at 10,000 CFA francs, contrasting with an average of 21,300 CFA francs in the open market. Various NPK blends like 6-20-10, 15-15-15, and 20-20-20 were priced at 16,500 FCFA (26.94 USD), 18,875 FCFA (30.82 USD), and 45,000 FCFA (73.48 USD) respectively for 25 kg and 50 kg bags. Additionally, sulphates such as copper, potash, and zinc were available primarily in 1 kg and 25 kg bags, used preventively against fungal attacks and to enhance crop productivity, priced between 10,500 FCFA (17.41 USD) and 70,000 FCFA (116.18 USD). Ministerial measures at the season’s onset-maintained market stability, setting transfer prices for mineral fertilizers and ensuring phosphate distribution at no cost. Liquid and solid organic fertilizers and amendments were also available at unit prices ranging from 1,000 to 1,500 CFA francs.
Availability and Affordability: West African fertilizer markets are showing mixed price trends as the planting season begins. While fertilizers are widely available, with moderate availability in Ghana and Benin, some countries are experiencing price increases due to heightened demand during the rainy season. In response, several governments are providing subsidies to help farmers cope with the high prices.
Distribution: Fertilizer importation, transportation, and logistics have proceeded smoothly across West Africa, with minimal disruptions or border restrictions noted in May. Substantial volumes of fertilizers were successfully transported through entry points and distributed to Mali and Burkina Faso. In Nigeria, logistical operations remain largely unhindered, except for the Northeast region, where security challenges pose transportation restrictions. The National Port Authority (NPA) plays a pivotal role in facilitating efficient logistical operations and expediting clearance processes for fertilizers across the West African region, contingent upon proper documentation.