The Fertiliser and Nitrogen Compounds Industry : In South Africa and other developing markets the supply of fertilisers is increasingly linked to developmental objectives of ensuring food security and supporting and growing the small-scale farming sector. The estimated value of the South African fertiliser market is approximately R10bn. The industry supplies around 2 million tons of fertiliser products to the local market, with the maize industry consuming between 40% and 50% of total production. ;
Market Dominance: South Africa has become a net importer of fertilisers. Although a range of large, medium and small players is involved in the sector, research by the African Centre for Biodiversity shows that three players dominate the South African fertiliser industry: Omnia Fertiliser with market share of 45%, followed by Kynoch Fertiliser and Profert Holdings with an estimated 15% each. Foskor is the only producer of phosphates and phosphoric acid and Sasol remains the largest producer of chemical inputs into fertiliser but is no longer allowed to sell the end-product. This follows Competition Commission intervention in an attempt to ensure competitive pricing in the manufacture of fertilisers.
Report Coverage: This report focuses on the manufacture, wholesale and retail of fertilisers and nitrogen compounds in South Africa. It examines current conditions including the recent drought which resulted in reduced demand for fertilisers, new investments and technological developments in the industry. The report profiles 41 companies including blending companies such as Atlas Organic Fertilisers (Pty) Ltd and Aquasol Nutri as well as Gavilon South Africa (Pty) Ltd which imports and supplies fertilisers to co-operatives, an important source of fertiliser sales. Also profiled is Premier Food and Fishing which listed on the JSE in 2017 and is one of the few companies in South Africa to produce fertilisers from composted ocean fish and crustaceans.
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 3
2.2. Geographic Position 4
3. SIZE OF THE INDUSTRY 5
4. STATE OF THE INDUSTRY 13
4.1. Local 13
4.1.1. Corporate Actions 15
4.1.2. Regulations 15
4.1.3. Enterprise Development and Social Economic Development 16
4.2. Continental 17
4.3. International 19
5. INFLUENCING FACTORS 20
5.1. Cyclicality 20
5.2. Economic Environment 21
5.3. Government Initiatives 21
5.4. Labour 22
5.5. Environmental Concerns 23
5.6. Technology, Research and Development (R&D) and Innovation 24
6. COMPETITION 26
6.1. Barriers to Entry 27
7. SWOT ANALYSIS 28
8. OUTLOOK 28
9. INDUSTRY ASSOCIATIONS 29
10. REFERENCES 29
10.1. Publications 29
10.2. Websites 30
42 COMPANIES PROFILES 31
AFRICOM COMMODITIES (PTY) LTD 31
AG-CHEM AFRICA (PTY) LTD 33
AQUASOL AGROCOM SOUTHERN AFRICA (PTY) LTD 35
ATLAS ORGANIC FERTILISERS (PTY) LTD 37
AVISON (PTY) LTD 39
BALL STRAATHOF (PTY) LTD 41
BOSVELD PHOSPHATES (PTY) LTD 43
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