Zim widens search for alternative fertiliser sources

Zimbabwe is looking for alternative source markets for fertiliser as a global shortage triggered by the Eastern Europe crisis looms with reports saying the country was extending its search to India among other destinations, Business Weekly can reveal.

The conflict between Russia and Ukraine has partly led to cuts in fertiliser shipments; prices reaching record highs, with far-reaching consequences for local farmers who have started preparing for the forthcoming winter and summer cropping seasons.

Russia’s status as a primary exporter of ammonia, knock-on effects from sanctions imposed on the country by western countries over its military operations in Ukraine have disrupted the supply chain, triggering concerns over food security.

Last year, Russia and Belarus accounted for 40 percent of global exports of potash. Russia also accounted for 22 percent of global exports of ammonia gas, 14 percent of global urea exports and 14 percent of mono ammonium phosphate.

Already, inquiries are being made in India, a senior Government official said, as the country desperately seeks some alternative markets to avert a potentially devastating food crisis moving into next year and beyond.

“The situation is bad and we need to act now,” said a Government minister who declined to be named citing protocol issues. “In one of the Cabinet meetings, it was highlighted that inquiries were being made in India and other source markets.

“India is one of our target markets but when you have a global crisis, there are also other countries looking at the same market as an alternative source. The situation is not looking good and it has created a serious headache for the Government,” the minister added.

“You should also note that government is the biggest financier of farming through some state-assisted programmes. That explains why the Government is worried.”

Through various farming schemes, the government support farmers, particularly those in the countryside with free inputs including fertilisers. Under the Presidential Free Cotton Inputs Scheme, the government support 400 000 households. Under Pfumvudza/Intwasa grain scheme, nearly 1,8 million households are benefiting. Zimbabwe requires at least 600 000 tonnes of fertilisers (both compound and top dressing) during a normal summer season.

The Government has, however, assured sufficient stocks of fertilisers for the winter season. The country is targeting to plant 75 000 hectares of wheat and 7 000 for barley. Efforts to get a comment from the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development were fruitless.

With the country reportedly facing grain shortage after a bad season last season, it has become critical to boost production during the winter and summer cropping seasons. But the global shortage of fertiliser is likely to dampen prospects for better yields.

“There are concerns that the fertiliser shortage will trigger massive price hikes, which will be undoubtedly beyond the reach of many farmers,” said Carlos Tadya, an analyst with a local economic think tank.
“While the government is looking to ramp up local production to mitigate the impact of Russia’s military operation in Ukraine, analysts say it would be adequately not sufficient to stabilise the prices,” said Tadya.
Industry and Commerce Minister, Dr Sekai Nzenza, said the looming fertiliser shortage crisis was among issues that dominated discussions during the World Economic Forum held in Davos, Switzerland last week.

“We had a fruitful discussion in Davos and major issues that were discussed included how do we recover from the Covid-19 pandemic, food security, climate change and fertiliser (supply constraints),” said Minister Nzenza.

“There is serious concern that food security will be affected as a result of the ongoing conflict between Ukraine and Russia.

“As a result, some of the countries we used to rely on to export fertiliser to Zimbabwe will not be able to provide the fertiliser we need to ensure food security. So some of the discussions were to focus on how to ensure food security.”

Analysts say the Government must now operationalise the five-year fertiliser import substitution strategy whose targets are to increase local production of fertiliser while efforts should now be directed towards expanding production of organic fertiliser.

“The global organic fertiliser market is growing, it is estimated to grow to US$15, 9 billion in 2030,” agricultural economist Dr Midway Bhunu told Business Weekly in an interview.

“There is a great opportunity for us to manufacture these fertilisers and end up exporting in addition to creating employment and meeting our demand. We have export crops such as coffee whose markets are now calling for organic certification so one way or the other we shall see an increase in local demand for organic fertilisers especially for horticulture crops.”

Recently, Dr Nzenza said the Government would need to urgently avail nearly US$80 million to recapitalise Dorowa Minerals, the country’s sole miner of phosphates and Zimbabwe Phosphate Company (Zimphos), which processes the superphosphates into nitrogen, phosphorus, and potassium compound (NPK) fertilisers.-eBusiness Weekly