Adequate fertiliser stocks for winter wheat production

Adequate fertiliser stocks for winter wheat production

Nevanji Munyaradzi Chiondegwa

Zimbabwe has adequate stocks to meet its needs for the 2022 Winter Input programmes as well as commercial and retail needs, government has said.

In a Post-Cabinet media briefing in Harare, Information, Publicity and Broadcasting Services Minister Monica Mutsvangwa gave an update on the localisation of the fertiliser value chain.

“Regarding the 2022 Winter Cropping Season, Cabinet wishes to inform the nation that the local fertilizer industry has adequate stocks to supply existing Winter Input Programmes as well as other commercial and retail needs. The available fertilizer includes carry-over stock from the previous season and stocks under the Collateral Management Arrangement (CMA), which will be released once the required funding has been disbursed.”

The local fertilizer industry is accelerating implementation of the Five-Year Fertiliser Import Substitution Roadmap (2020-2024) with an objective to increase local production of phosphates and ammonium nitrate in order to reduce the fertilizer import bill.

Minister Mutsvangwa added, “To this end, the Industrial Development Corporation of Zimbabwe (IDC) has invested into the local fertilizer value chain, from extraction of phosphates to the granulation of basal fertilizers. The company is modernising operations at its subsidiaries at Dorowa Minerals and Zimbabwe Phosphates (Zimphos) in order to increase production.”

She continued, “Meanwhile, Sable Chemical has secured a loan from Afreximbank for the refurbishment of its plant and equipment as well as purchasing rail tank cars. Sable Chemicals’ target is to produce 120 000 metric tonnes of Ammonium Nitrate for the 2022/23 farming season.”

The fertilizer production value chain plays a critical role in ensuring successful agricultural production, which is the bedrock of the country’s economy. Government is thus looking at ways of recapitalizing the sector, including through listing on the stock exchange in order to attract suitable investors.

The present annual national demand of fertilizers stands at 350 000 metric tonnes of phosphates and 250 000 metric tonnes of ammonium nitrate. Although the local fertilizer industry is currently operating at 30% of its capacity utilization, indications are that local production is increasing leading to the reduction of imports.

The current fertiliser supply gaps present a good investment opportunity for expansion of existing capacities as well as greenfield projects to both foreign and local investors.