The report focuses on the manufacture, wholesale and retail of fertilizers and nitrogen compounds in South Africa and the factors influencing the sector's success including competition and regulatory issues.
There are comprehensive profiles of 41 companies including major players such as Sasol, Foskor and Omnia, which is building a nitro phosphate plant in Sasolburg at a cost of R690 million. Profiles include those of Farmisco, trading as Kynoch, which has bought Profert, which is also profiled, out of business rescue.
The fertilizer and nitrogen compounds industry
In 2017 the estimated value of purchases in the fertilizer industry was R13.8 billion, representing 9.5% of total purchases in the agricultural sector, according to Statistics South Africa. South Africa remains a relatively small player internationally but it has one of the largest and most sophisticated fertilizer markets on the African continent. The fertilizer industry will be affected by the delay in the 2018–2019 planting season due to drought, where it has been estimated that maize plantings reduced by 20%.
The industry is highly concentrated, with Omnia and Kynoch being the largest companies in the sector. Sasol and Foskor also play a large role as they are significant providers of inputs to the manufacture of fertilizers. A number of rulings by competition authorities have had a significant effect on the sector. It may also be affected by the draft Fertilizer Bill provides for regulation concerning raw material and licensing of facilities, and land expropriation. On the other hand, it may benefit from European Union regulations to reduce the level of cadmium in fertilizers as South African fertilizers have low cadmium levels.
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Read the article online at: https://www.worldfertilizer.com/nitrogen/29042019/the-fertilizer-and-nitrogen-compounds-industry-in-south-africa-2019/