Fertilizer

Sector Fact Sheet

1. Sector Overview

According to FAO (2012), the global fertilizer consumption was at 175 million tonnes in 2011. It is estimated to increase up to
190 million tonnes by 2015.

GLOBAL CONSUMPTION OF FERTILIZER, 2011 2015 (000tonnes)

PRODUCT 2011 2012F 2013F 2014F 2015F
Nitrogen 105,348 107,374 109,299 111,109 112,909
Phosphate 41,679 42,562 43,435 44,245 45,015
Potash 28,679 29,682 30,683 31,594 32,453
TOTAL 175,706 179,618 183,417 186,948 190,377
Source: FAO, 2012

At a product level, fertilizer is divided into three main categories, namely, Nitrogen, Phosphate, Potash based fertilizers.
Depicted in the table below is global demand in fertilizer by region for the period 2011 to 2015.

Over the five years between 2011 and 2015, the African continent will have the highest demand for fertilizer with an average
of 3.2% growth in demand for fertilizer. This growth is higher than the average growth rate for global demand in fertilizer which
is estimated to be 2.2%. During the same period Africa will also have the higher growth in demand for potash nutrient fertilizer.

GLOBAL INCREASE IN DEMAND OF FERTILIZER BY REGION 2011-2015

PRODUCT Nitrogen Phosphate Potash
Africa 1.9% 3.3% 4.3%
America 1.6% 2.3% 2.3%
Asia 1.9% 1.7% 4.0%
Europe 1.3% 1.7% 2.1%
Oceania 1.0% 2.8% 4.3%
World 1.7% 1.9% 3.1%
Source: FAO, 2012

3. Trade

3.1 Global Trade of Fertilizer

Global trade in fertilizer increased steadily between 2002 and 2007 from ZAR188bn to ZAR333bn. In 2008, trade significantly
increased to ZAR730bn before declining by almost half in 2009 the increased to ZARZAR430.9bn in 2010 and ZAR567.8bn in
2011. Between 2002 and 2011, trade in fertilizer increased by an average of 13% year-on-year and increased by 31.8% in 2011.

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 GLOBAL TRADE IN FERTIRLIZER 2002- 2011
800
700
600
500
Value (ZARbn)

400
300
200
100
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Trade (ZARbn) 188.5 164.6 182.0 210.6 228.2 333.3 730.1 382.4 430.9 567.8

Source: TradeMap, 2012

Depicted below are global trade of fertilizer by product in 2011as well as growth. As can be seen from the table mineral or
chemical fertilizers, nitrogenous are the largest export product by value while mixtures of nitrogen, phosphorous or potassium
fertilizers are the fastest growing exports of fertilizer products.

GLOBAL TRADE OF FERTILIZER BY PRODUCT, 2011

VALUE %
HS
PRODUCT 2011 GROWTH
CODE
(ZARm) 2010-2011
3102 Mineral or chemical fertilizers, nitrogenous 205,748.3 32.9%
3105 Mixtures of..nitrogen, phosphorous or potassium fertilizers 179,332.0 39.7%
3104 Mineral or chemical fertilizers, potassic 152,844.0 26.4%
3103 Mineral or chemical fertilizers, phosphatic 20,178.2 27.2%
3101 Animal or vegetable fertilizers in packages weighing more than 10 kg 4,853.0 8.9%
Source: TradeMap, 2012

The top export markets for global fertilizer exports in 2011 were Russia, Canada, China, United States and Belarus respectively.
Exports of fertilizer to Russia were worth ZAR72.5bn translating to 14% share of total fertilizer exports. Exports by the Ukraine
grew by 91% in 2011.

Top importing markets were the United States, Brazil, India, China, and France respectively. The United States and Brazil
accounted for 12% share each of total imports followed by India at 10%. The fastest growing importing countries were Brazil
and Indonesia with 82% import growth each.

TOP 10 EXPORT MARKETS FOR FERTILIZER, 2011 TOP 10 IMPORT MARKETS FOR FERTILIZER, 2012
VALUE % % VALUE % %
RANK EXPORTING MARKETS 2011 GROWTH SHARE RANK IMPORTING MARKETS 2011 GROWTH SHARE
(ZARbn) 2010 2011 2011 (ZARbn) 2010-2011 2011
1 Russia 72.5 35% 14% 1 United States 69.2 34% 12%
2 Canada 57.9 32% 11% 2 Brazil 65.7 82% 12%
3 China 57.0 44% 11% 3 India 57.2 27% 10%
4 United States 44.8 34% 9% 4 China 24.8 32% 4%
5 Belarus 27.2 53% 5% 5 France 22.6 28% 4%
6 Germany 26.0 31% 5% 6 Thailand 19.7 34% 3%
7 Netherlands 20.0 32% 4% 7 Indonesia 18.6 82% 3%
8 Belgium 19.4 29% 4% 8 Germany 15.1 44% 3%
9 Israel 15.2 16% 3% 9 Belgium 12.8 28% 2%
10 Ukraine 13.1 91% 3% 10 Malaysia 12.6 13% 2%
TOTAL EXPORTS 521.9 30% 100% TOTAL IMPORTS 566.2 33% 100%
Source: TradeMap, 2012

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 3.2 South Africas Trade of Fertilizer

Between 2003 and 2008, South Africa trade in fertilizer increased significantly from ZAR3bn in 2002 to ZAR10.3bn in 2008.
Since 2004, South Africa has had a trade deficit in trade of fertilizer, with imports significantly increasing from ZAR2.7bn in 2007
to reach ZAR7.5bn in 2008. In 2011, trade in fertilizer comprised of exports worth ZAR1.6bn and imports worth ZAR5.4bn
resulting in a trade deficit of ZAR3.7bn.

SOUTH AFRICA'S FERTILIZER TRADE, 2002 - 2011

10,000
8,000
6,000
Value (ZARm)

4,000
2,000
0
-2,000
-4,000
-6,000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Exports (ZARm) 1,466.2 1,102.7 926.7 1,224.1 1,040.8 1,386.0 2,716.6 1,811.8 1,359.6 1,665.9
Imports (ZARm) 1,572.4 941.0 1,441.1 1,320.9 1,990.2 2,733.4 7,586.0 2,465.0 3,060.2 5,425.6
Trade Balance (ZARm) -106.2 161.7 -514.3 -96.8 -949.4 -1,347.4 -4,869.4 -653.2 -1,700.7 -3,759.7

Source: Quantec, 2012

South Africas trade in fertilizer by product in 2011 is depicted in the table below. The top export product was exports in
animal or vegetable fertilizers and the top import product was mineral or chemical fertilizers (nitrogenous).

SOUTH AFRICA'S EXPORTS OF FERTILIZER, 2011 SOUTH AFRICA'S IMPORTS OF FERTILIZER, 2011
VALUE % VALUE %
RANK PRODUCT 2011 GROWTH RANK PRODUCT 2011 GROWTH
(ZARm) 2010-2011 (ZARm) 2010-2011
H3101: Animal or vegetable fertilizers, H3102: Mineral or chemical fertilizers,
1 16.1 17.13% 1 17.1 -0.41%
in packs >10 kg nitrogenous
H3102: Mineral or chemical fertilizers, H3105: Fertilizer mixtures in packs of <
2 538.4 10.64% 2 3,334.2 78.71%
nitrogenous 10kg
H3103: Mineral or chemical fertilizers, H3103: Mineral or chemical fertilizers,
3 44.0 132.28% 3 84.5 50.65%
phosphatic phosphatic
H3104: Mineral or chemical fertilizers, H3104: Mineral or chemical fertilizers,
4 76.3 17.86% 4 1,090.3 25.16%
potassic potassic
H3105: Fertilizer mixtures in packs of H3101: Animal or vegetable fertilizers, in
5 991.2 27.80% 5 899.4 259.70%
< 10kg packs >10 kg
TOTAL FERTILIZER EXPORTS 1,665.9 22.53% TOTAL FERTILIZER IMPORTS 5,425.6 77.29%
Source: Quantec, 2012

The top export markets for South Africas fertilizer exports in 2011 were mostly African countries with the exception of
Argentina and Uruguay. The top export markets were Zambia, Zimbabwe, Argentina, Mozambique and Tanzania. Exports of
fertilizer to Zambia were worth ZAR595.6m translating to 38.5% share of total fertilizer exports followed by Zimbabwe which
accounted for 21% share of exports. Exports to Tanzania grew by 693% in 2011. Other fastest growing export markets were
Angola (367%), Mozambique (142%), DRC (42.2%), and Zambia (6.3%).

The top source markets for South Africas imports of fertilizer in 2011 were Saudi Arabia, Qatar, China, Russia and Germany.
The fastest growing destination market in 2011 was Oman with 704% growth in imports and the second fastest importing
market was China with 462% growth in imports.

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 SOUTH AFRICA'S TOP 10 EXPORT MARKETS FOR FERTILIZER, 2011 SOUTH AFRICA'S TOP 10 IMPORT MARKETS FOR FERTILIZER, 2011
VALUE % % VALUE % %
DESTINATION
RANK SOURCE COUNTRY 2011 GROWTH SHARE RANK 2011 GROWTH SHARE
COUNTRY
(ZARm) 2010-2011 2011 (ZARm) 2010-2011 2011
1 Zambia 595.6 6.3% 35.8% 1 Saudi Arabia 967.1 25.1% 17.8%
2 Zimbabwe 349.0 -16.8% 21.0% 2 Qatar 826.8 87.8% 15.2%
3 Argentina 287.1 - 17.2% 3 China 577.2 462.4% 10.6%
4 Mozambique 165.0 142.9% 9.9% 4 Russia 495.8 217.4% 9.1%
5 Tanzania 45.3 694.6% 2.7% 5 Germany 441.2 127.9% 8.1%
6 Uruguay 42.9 - 2.6% 6 Chile 353.4 36.2% 6.5%
7 DRC 19.4 42.2% 1.2% 7 Israel 314.1 -3.0% 5.8%
8 Kenya 19.2 0.1% 1.2% 8 Oman 292.7 704.0% 5.4%
9 Malawi 19.0 -75.6% 1.1% 9 Netherlands 235.4 52.5% 4.3%
10 Angola 16.9 367.8% 1.0% 10 Belgium 181.0 48.8% 3.3%
TOTAL EXPORTS 1,665.9 22.5% 100.0% TOTAL IMPORTS 5,425.6 77.3% 100.0%
Source: Quantec, 2012

3.3 Western Cape Trade of Fertilizer

Between 2002 and 2011, Western Cape fertilizer trade increased from ZAR63m in 2002 to ZAR426.2m. During the period,
trade in fertilizer in South Africa increased steadily, however, in 2008 trade soared to ZAR598.1m. In 2011, Western Cape
fertilizer trade was worth ZAR426.2m comprising of exports worth ZAR105.7m and imports worth ZAR320.5m.

WESTERN CAPE'S TRADE IN FERTILIZER, 2002 - 2011

600

400
Value (ZARm)

200

-200

-400

-600
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Exports (ZARm) 4.5 13.4 25.9 19.7 62.5 137.2 88.0 183.3 96.0 105.7
Imports (ZARm) 58.4 57.3 52.6 76.5 105.2 158.0 510.0 352.9 325.3 320.5
Trade Balance (ZARm) -53.9 -44.0 -26.7 -56.8 -42.6 -20.8 -422.0 -169.5 -229.3 -214.8

Source: Quantec, 2012

Western Capes trade in fertilizer by product is depicted below. Top exports are animal or vegetable fertilizer mixtures in small
packs at ZAR49.2m followed by exports of mineral or chemical fertilizers, nitrogenous at ZAR41.2m. Exports of mineral or
chemical fertilizers, nitrogenous grew by 51%.

Western Capes top imports mineral or chemical fertilizers, nitrogenous with an import value of ZAR178.3m. The fastest
growing imports were imports of mineral or chemical fertilizers, phosphatic with a growth of 117% in 2011.

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 WESTERN CAPE'S EXPORTS OF FETERLIZER, 2011 WESTERN CAPE'S IMPORTS OF FETERLIZER, 2011
VALUE % VALUE %
RANK PRODUCT 2011 GROWTH RANK PRODUCT 2011 GROWTH
(ZARm) 2010-2011 (ZARm) 2010-2011
H3101: Animal or vegetable fertilizers, in H3102: Mineral or chemical fertilizers,
1 5.9 -27% 1 178.3 -23.25%
packs >10 kg nitrogenous
H3102: Mineral or chemical fertilizers, H3105: Fertilizer mixtures in packs of <
2 41.2 51% 2 89.1 100.55%
nitrogenous 10kg
H3103: Mineral or chemical fertilizers, H3103: Mineral or chemical fertilizers,
3 8.0 -17% 3 31.2 117.68%
phosphatic phosphatic
H3104: Mineral or chemical fertilizers, H3104: Mineral or chemical fertilizers,
4 1.4 35% 4 13.8 -46.28%
potassic potassic
H3105: Fertilizer mixtures in packs of < H3101: Animal or vegetable fertilizers, in
5 49.2 -2% 5 8.0 -5.64%
10kg packs >10 kg
TOTAL EXPORTS 105.7 10% TOTAL IMPORTS 320.5 -1.48%
Source: Quantec, 2012

The top export markets for Western Capes fertilizer exports in 2011 were Zimbabwe, the United States and Chile. Exports to
Zambia grew by 243% in 2011.

WESTERN CAPE DESTINATION MARKETS OF FERTILIZER, 2011

VALUE %
DESTINATION %
RANK 2011 GROWTH
MARKETS SHARE
(ZARm) 2010-2011
1 Zimbabwe 52.4 2.3% 49.6%
2 United States 9.1 32.9% 8.6%
3 Chile 8.0 -12.2% 7.5%
4 Zambia 6.7 243.6% 6.3%
5 Mozambique 5.6 49.8% 5.3%
6 Australia 4.6 13.1% 4.3%
7 Angola 2.1 85.7% 2.0%
8 Egypt 1.6 20.6% 1.5%
9 Thailand 1.3 17.8% 1.3%
10 Japan 1.3 26.1% 1.3%
TOTAL EXPORTS 105.7 10.1% 100.0%
Source: Quantec, 2012

The top source markets for fertilizer imports into the Western Cape in 2011 were Qatar, Russia and the Netherlands. The
fastest growing import market in 2011 was Italy with 797% growth in imports followed by Russia (149%) and Spain (111%).

WESTERN CAPE SOURCE MARKETS OF FERTILIZER, 2011

VALUE %
%
RANK SOURCE MARKETS 2011 GROWTH
SHARE
(ZARm) 2010-2011
1 Qatar 106.4 -20.9% 33.2%
2 Russia 93.6 149.0% 29.2%
3 Netherlands 37.0 -41.0% 11.5%
4 Belgium 34.4 53.0% 10.7%
5 Israel 16.9 -32.5% 5.3%
6 Germany 12.8 16.5% 4.0%
7 France 7.7 -15.6% 2.4%
8 Spain 3.6 111.6% 1.1%
9 United States 2.3 -40.7% 0.7%
10 Italy 1.9 797.6% 0.6%
TOTAL IMPORTS 320.5 -1.5% 100.0%
Source: Quantec, 2012

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 4. FDI

4.1 Global FDI into Pesticide, Fertilisers & Other Agricultural Chemicals

Between January 2003 and August 2012 a total of 390 FDI projects were recorded into pesticide, fertilisers & other agricultural
chemicals globally. These projects were valued at ZAR367.2bn. and a total of 61,378 jobs were created.

GLOBAL FDI INTO PESTICIDE, FERTILISERS & OTHER AGRICULTURAL CHEMICALS, 2003 - AUGUST 2012
90,000 70
80,000 60
Value (ZARm)

70,000

Number of Projects
50
60,000
50,000 40
40,000 30
30,000
20
20,000
10,000 10

- 0
Jan - Aug
2003 2004 2005 2006 2007 2008 2009 2010 2011
2012
Capex (ZARm) 21,529 23,743 19,791 42,619 56,647 85,048 15,225 37,292 48,401 16,943
Projects 31 34 34 35 44 40 47 61 49 15

Source: FDI Intelligence, 2012

The United States was the largest source market for FDI into pesticide, fertilisers & other agricultural chemicals, investing in 87
projects with a total CAPEX value of ZAR33.2bn. Other top source countries by projects were Germany (39 projects), Japan
(28 projects), Canada (17 projects), China, Switzerland and Norway (14 projects each).

TOP 10 SOURCE MARKETS FOR FDI INTO PESTICIDE, FERTILISERS & OTHER AGRICULTURAL CHEMICALS, 2003 - AUGUST 2012
CAPEX
RANK SOURCE COUNTRY PROJECTS % PROJECTS % CAPEX COMPANIES % COMPANIES
(ZARm)
1 United States 87 22.3% 33 230 9.0% 50 21.6%
2 Germany 39 10.0% 16 421 4.5% 19 8.2%
3 Japan 28 7.2% 48 478 13.2% 17 7.4%
4 Canada 17 4.4% 13 005 3.5% 8 3.5%
5 China 14 3.6% 17 349 4.7% 9 3.9%
6 Switzerland 14 3.6% 5 199 1.4% 4 1.7%
7 Norway 14 3.6% 14 392 3.9% 9 3.9%
8 Netherlands 13 3.3% 4 022 1.1% 9 3.9%
9 Hong Kong 13 3.3% 4 951 1.3% 4 1.7%
10 India 12 3.1% 57 758 15.7% 10 4.3%
Other Countries 38 35.6% 152 431 41.5% 139 39.8%
TOTAL 289 100.0% 367 236 100.0% 278 100.0%
Source: FDI Intelligence, 2012

The United States was the largest destination market for FDI into the pesticide, fertilisers & other agricultural chemicals. The
United States attracted 68 projects with a total value of ZAR48bn. Other top destination countries by projects were China (40
projects), India (23 projects), France (19 projects), Brazil (17 projects) and Canada (12 projects).

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 TOP 10 DESTINATION MARKETS FOR FDI INTO PESTICIDE, FERTILISERS & OTHER AGRICULTURAL CHEMICALS, 2003 - AUGAST 2012
CAPEX
RANK DESTINATION COUNTRY PROJECTS % PROJECTS % CAPEX COMPANIES % COMPANIES
(ZARm)
1 United States 68 17.4% 48 009.8 13.1% 49 21.2%
2 China 40 10.3% 21 245.9 5.8% 28 12.1%
3 India 23 5.9% 4 742.2 1.3% 16 6.9%
4 France 19 4.9% 1 446.6 0.4% 15 6.5%
5 Brazil 17 4.4% 12 300.1 3.3% 15 6.5%
6 United Kingdom 12 3.1% 2 581.9 0.7% 10 4.3%
7 Canada 12 3.1% 3 535.4 1.0% 10 4.3%
8 Russia 10 2.6% 5 981.8 1.6% 10 4.3%
9 Spain 9 2.3% 3 496.7 1.0% 8 3.5%
10 Colombia 8 2.1% 870.2 0.2% 7 3.0%
Other Countries 172 44.1% 263 027.5 71.6% 63 27.3%
TOTAL 390 100.0% 367 238.0 100.0% 231 100.0%
Source: FDI Intelligence, 2012

4.1 South Africas inward FDI into Pesticide, Fertilisers & Other Agricultural Chemicals

The top provinces attracting FDI projects in South Africa was the Western Cape and Gauteng, attracting two projects each in
the pesticide, fertilisers & other agricultural chemicals sub-sector.

FDI INTO SOUTH AFRICA: PESTICIDE, FERTILISERS & OTHER AGRICULTURAL CHEMICALS, 2003 - AUGAST 2012
CAPEX
DATE INVESTING COMPANY SOURCE COUNTRY DESTINATION STATE JOBS
(ZARm)
Aug 2011 Genetwister Africa Netherlands Western Cape 88.4 43
May 2010 Genetwister Technologies Netherlands Western Cape 88.4 43
Jul 2009 Gavilon Fertilizer United States Gauteng 23.6 16
Apr 2006 Embrapa Brazil Not Specified 21.0 21
Nov 2003 Mitsubishi Chemical Japan Gauteng 2 073.6 104
Jul 2003 LignoTech Norway KwaZulu-Natal 378.7 36
Source: FDI Intelligence, 2012

South Africa invested in one project into the pesticide, fertilisers & other agricultural chemicals sub-sector in India.

FDI FROM SOUTH AFRICA: PESTICIDE, FERTILISERS & OTHER AGRICULTURAL CHEMICALS, 2003 - AUGAST 2012
CAPEX
DATE INVESTING COMPANY DESTINATION COUNTRY DESTINATION STATE JOBS
(ZARm)
Sep 2003 Axiom-Bio products India Andhra Pradesh 13.5 19
Source: FDI Intelligence, 2012