JULY 2021

Market Comments

Fertilizer Prices

Global costs and Cost Insurance and Freight rates went higher. At the local market, fertilizer purchasing costs sharply increased starting 2018 when for example DAP was sold at$ 416 per tonne, rising to around $650 in July 2021. Urea prices rose from $359 to $560 per tonne and CAN from $274 to $420 per tonne.
Fertilizer prices remain high in most parts of Tanzania. DAP fertilizer is sold at TSh 75000 for a 50 kg bag in Dar es Salaam and the price has gone up in other regions up to TSh 100,000. In a bid to address the rising prices, the Government has put on hold the Bulk Procurement System (BPS) program to allow for open markets where imports are based on needs. Also, the Government has advised farmers to use NPS and NPSZn products for planting, especially because they are relatively inexpensive compared to DAP. These importations should also be done in bulk to cut on cost. Recently, OCP has been offering NPS into the market from old stock at relatively lower margins than DAP. The Government, on its part, will ensure that shipments are fast cleared at the port to ensure they reach farmers on time.

Fertilizer Availability

With the fertilizer market transforming to an open market after the BPS system was put on hold, dealers and importers in the country are said to be preparing to bring in products especially for the short rain season in September. NPK cargo have been planned for August from Russia for one of the traders. More Urea cargo from Singapore came in July while Yara’s Amidas and NPK is expected at the Dar es Salaam port in mid-August.

Other fertilizer updates

Non-chemical fertilizer gaining ground in Tanzania
Hakika Organic Fertilizer, a locally manufactured, non-chemical fertilizer, was launched mid-July in Tanzania’s Njombe region. The fertilizer encountered enthusiasm and eagerness by extension officers and avocado growers. Industry experts say the new product will improve soil health, promote productivity, and contribute to increasing exports of fruits, greens, and roots.

JUNE 2021

Market Comments

Generally, prices of nitrogen and phosphates fertilizers have been stable albeit at higher levels Year-over-Year (YoY). This has been majorly driven by strong freight assessments caused by rebounding global trade recovery as well as strong demand from traditional global markets namely India and Latin America.

Freight assessments, from East Africa’s main source market, Middle East, have been indicated at upwards of $50 since end of Q1 up from the usual average figure of $30/mt +/-. This holds true for most of the major supply routes globally.

Fertilizer Prices

The prices for fertilizers have been increasing since mid-2020 mainly due to strong demand. The prices for Di-ammonium Phosphate (DAP) increased by +1.7% while the price for Urea decreased by -7% between March and April 2021. Both DAP and Urea fertilizers showed a similar increase in price trends over the past three months in 2021. A modest increase is forecasted throughout 2021 due to sustained global prices.

Fertilizer Availability

Fertilizer availability has been shaky in June largely due to prolonged tender decisions. TFRA, which is the authority charged with fertilizer procurement through a Bulk Procurement System, held off on deciding when to float the tender.

Initial plans were for the tender to be announced in early June, but this has since been pushed to July with reports of the tender having been cancelled due to the high bid prices submitted. Quantities sought during the latest tender were 21,000mt for DAP and 35,000mt for Urea

Other fertilizer updates

Yara to promote friendly use of fertilizer: YARA Tanzania Limited has reiterated its commitment to work with the government to ensure cotton growers increase production and productivity to raise income and foster cotton raw materials by making full use of fertilizer and following all the guidelines of modern farming. Yara, in collaboration with the Tanzania Cotton Board, established 124 field classes in four regions of Simiyu, Mwanza, Tabora and Geita and its 12 districts for 2020/21 during the agricultural season so that cotton growers can learn, in practice, how best to adapt and use Yara fertilizer following handing over the company 31 bags of planting fertilizer and 31 bags of fertilizer for growth for all class farms.

Tanzania Fertilizer Regulatory Authority (TFRA) set to lure more investors in fertilizer production: TFRA for the first time is set to take part in the 45^th edition of Dar es Salaam International Trade Fair (DITF) to be held from 28^th June to 13^th July 2021. Being in charge of regulating the manufacturing, importation, marketing and use of fertilizer in the country, TFRA is determined to participate in this year’s DITF themed: Industrial Economy for Sustainable Employment, to showcase its activities and how it can contribute to the government’s industrialization agenda considering the fertilizer sub sector.

Tanzania Targets Becoming the Regional Fertilizer Hub: The government has outlined strategies to turn Tanzania into a fertilizer hub including increasing importation and re-exportation to the East African Community and Southern African Development Community Member States. Apart from increasing the volume of cargo passing in the country, the move is expected to lower fertilizer prices that have skyrocketed by 50 percent in the global market between June 2020 and June 2021.

MAY 2021

Market Comments

Fertilizer Prices

Fertilizer prices in the northern bimodal are low because of low demand since there is no planting taking place. Crops such as maize, sorghum, and millet in these areas are in their final stages of growth, so do not require fertilizers. Fertilizer prices in the southern and central unimodal areas are equally low because most crops such as maize, sorghum, and rice are being harvested so there is low fertilizer demand.

Fertilizer Availability

Fertilizer is available in the country, so no shortages have been reported. Farmers can access fertilizer because no restrictions have been placed in retail shop working hours, like other countries in the region. Despite the COVID-19 pandemic that has led to border closure of some countries, Tanzania borders remain open, easing fertilizer transportation.

APRIL 2021

Market Comments

Fertilizer Prices

Following the end of the planting period, fertilizer prices in the northern, southern, and central bimodal areas are low because of low demand. Crops such as maize, sorghum, millet, and rice in these areas are in their growth stages.

Fertilizer Availability

Fertilizer is available in the country and no shortages have been reported. Despite the COVID-19 pandemic that has led to the border closure of some countries, Tanzania’s borders remain open, easing fertilizer transportation.

Other Key Information

The government of Tanzania is planning to build a 268 m³ water reservoir to irrigate 11,700 hectares of farmland. The project aims at improving farmers’ production within 5 years. The future dam will be built in Kalebe, a village in the Kagera region.

MARCH 2021

Market Comments

Fertilizer Prices

Fertilizer prices in the northern bimodal areas is high because of the planting of major masika cereal crops such as maize, sorghum and millet that began towards the end of February and continued in March. Most fertilizer prices in the Southern and Central unimodal areas of Tanzania are low because currently there is no planting taking place. Planting in these areas was completed in January.

Fertilizer Availability

Fertilizer for the season is available in the country because importers had imported sufficient quantities, and agro dealers stocked enough fertilizer for the planting of masika crops in the northern bimodal area.

FEBRUARY 2021

Market Comments

Fertilizer Prices

Fertilizer prices in the northern bimodal areas is high because of the planting of major masika cereal crops such as maize, sorghum and millet that began towards the end of February. Fertilizer prices in the Southern and Central unimodal areas are low because currently there is no planting taking place. Planting in these areas was completed in January.

Fertilizer Availability

Fertilizer for the season is available in the country because importers already imported and agrodealers stocked enough for the planting of masika crops in the northern bimodal areas of the country.

JANUARY 2021

Market Comments

Fertilizer Prices

Fertilizer prices in the southern and central unimodal areas are high because of the planting of rice that is taking place in January. Prices in the northern parts are however low because currently there is no planting taking place and harvesting of Vuli season maize is also in progress.

Fertilizer Availability

Fertilizer is available in the country because importers have begun importing fertilizer products and agrodealers have also begun stocking them in preparation for the planting of Masika season crops in the bimodal areas which is set to begin in February.

DECEMBER 2020

Market Comments

Fertilizer Prices

Prices remained stable despite high demand that resulted from planting of maize, sorghum and rice which are the major food crops in Tanzania. The government was in control of prices to ensure that farmers are not affected.

Fertilizer Availability

Fertilizer was available in the country throughout the month. Agrodealers had stocked enough fertilizer in preparation for the planting of cereal crops. Most Tanzania business premises were not affected by COVID-19 since the Port of Dar es salaam was open for shipping of fertilizer.

Other Key Information

Tanzanian Prime Minister Kassim Majaliwa directed the Ministry of Agriculture to work hard towards improving horticulture production in the country to help the country enhance its economic growth. Majaliwa said this when he addressed the Regional Horticultural Trade and Investment Forum in the commercial capital Dar es Salaam. He directed the Ministry of Agriculture to create an authority that will specifically deal with horticulture production and to establish a research center for fruits, vegetables, and spices.

Highlights of 2020 Comments

Fertilizer Prices

During the first quarter, the fertilizer prices were stable. No increase was reported. The COVID-19 pandemic did not affect prices since there was stock from the previous year and, most fertilizers were already in-country and applied or well down the distribution channel before the impact of the pandemic began. At the beginning of the second quarter, fertilizer prices remained stable as the Tanzanian Fertilizer Regulation Authority was on schedule to ensure timely supply.

Towards the end of the second quarter, prices decreased because of low demand. Most crops were being harvested. The third quarter saw further price stability throughout the country because the ministry of agriculture supervised the distribution of free fertilizers by Yara Tanzania Company to all small-scale farmers.

Fertilizer Availability

Fertilizer was available in most months of the year. Tanzanian Fertilizer Regulation Authority ensured timely supply. The Ministry of Agriculture also ensured the distribution of free fertilizers by Yara Tanzania Company to all small-scale farmers. No COVID-19 restrictions were imposed in Tanzania, so fertilizer availability was not affected.

Other Key Information

A U$14 million (over 32.2bn/-) fertilizer manufacturing factory will be built at the outskirts of Dar es Salaam. Negotiations between the government and Morocco-based OCP Africa are at an advanced stage. OCP Tanzania Country Manager said they will manufacture Nitrogen Sulfur and Phosphorus and NSP Zinc fertilizers with high nutrient content suitable for paddy rice production in the seaside district. The plant which will have capacity of over 40,000 metric tons per annum will create thousands of jobs and save the country billions of shillings currently being spent to import artificial fertilizers which local farmers need.

Currently OCP Africa produces different fertilizer that include Urea and DAP which are used by cereal farmers and those engaged in cotton, vegetable, and fruit production, among other commodities. On her part, Tanzania Agricultural Research Institute (TARI)’s Mlingano Centre researcher, Dr Catherine Senkoro, said TARI will work in partnership with OCP Africa to ensure farmers obtain fertilizer that is suitable for their soil type and crop needs.

NOVEMVER 2020

Market Comments

Planting of msimu/unimodal crops such as maize, sorghum and rice, which are the major food crops in Tanzania, has begun, while vuli/bimodal crops are in various stages of growth.

Government plans to ensure that fertilizers are available throughout the country so that farmers can get them on time. Tanzania Fertilizer Regulatory Authority is ensuring that all types of fertilizers—DAP, Urea, SA, and NPK–will be available in all the country’s breadbasket regions, namely Ruvuma, Iringa, Njombe, Mbeya, Songwe, and Rukwa by the end of the year. As of November, they had secured 60% of the country’s fertilizer demand, with plans to reach 80% between February and March 2021.

OCTOBER 2020

Market Comments

Planting of maize in the Vuli/Bimodal areas ended in October. The Ministry of Agriculture is set to supervise the distribution of free fertilizers by Yara Tanzania Company to all small-scale farmers. The Ministry is to ensure that the fertilizer is distributed to the intended people. At least 83,000 small-scale farmers in 25 regions of Mainland Tanzania are set to benefit from the programme. Dar es Salaam Region has been excluded since it has a small number of farmers. Yara is also looking to distribute 2,500 tonnes of NPK fertilisers worth 16.5bn/- which would go to maize and rice farmers. They will also provide the beneficiaries free advice from YARA extension officers to improve crop production.

OCTOBER 2020

Market Comments

Planting of maize in the Vuli/Bimodal areas ended in October. The Ministry of Agriculture is set to supervise the distribution of free fertilizers by Yara Tanzania Company to all small-scale farmers. The Ministry is to ensure that the fertilizer is distributed to the intended people. At least 83,000 small-scale farmers in 25 regions of Mainland Tanzania are set to benefit from the programme. Dar es Salaam Region has been excluded since it has a small number of farmers. Yara is also looking to distribute 2,500 tonnes of NPK fertilisers worth 16.5bn/- which would go to maize and rice farmers. They will also provide the beneficiaries free advice from YARA extension officers to improve crop production.

AUGUST 2020

Market Comments

Some of the adult swarms are starting to mature, suggesting the possibility of a generation of breeding once the short rains start in October. On 22 August, at least one swarm crossed into northeast Uganda and reportedly spread to Moroto, Amudati, Napak districts while another swarm arrived in Southeast South Sudan to the south of Kapoeta in Eastern Equatoria. The swarms are mobile and not expected to mature or breed in either country. In Northeastern Ethiopia, mature swarms from Afar concentrated along a 400 km stretch of the escarpment on the eastern edges of the Amhara and Tigray highlands where egg-laying will cause hopper bands to form. So far, at least one band has formed in Tigray, south of Mekele. Aerial and ground control operations are in progress. Immature swarms persist in the Harar Highlands, in nearby eastern areas, and on the plateau in Northwest Somalia where aerial control operations are in progress using biopesticides. These swarms could mature and eventually breed in areas of rainfall, including the northwest coast where adult groups are present.

Harvesting of 2020 “masika” season crops (maize, sorghum, and millet), planted in March in northern, northeastern, and coastal bi modal rainfall areas continued in August. Some farmers are preparing their lands for the October season. Fertilizer prices − although controlled by government − are currently low. The demand is low as the sales. One Acre Fund (OAF) has floated a tender to procure CAN and NPK 17-17-17 for their Tanzania program. The fertilizer distribution to OAF’s farmers, for the 2021 season, starts around October 1, 2020.

JULY 2020

Market Comments

Seasonal crops such as maize (Vuli/Bimodal), Maize and Sorghum (Msimu/Unimodal), Rice (Msimu/Unimodal) are awaiting their planting seasons. Harvesting of 2020 “masika” season crops (maize, sorghum, and millet), planted in March in northern, northeastern, and coastal bi modal rainfall areas began in July to be extended to August.

Currently there are no fertilizer shortages in the country as the Tanzanian Fertilizer Regulation Authority is on schedule to ensure timely supply.

Most DAP prices remained stable. However, there was a 1% price increase in 1 location.

Most NPK prices remained stable. However, there was an average of 6% price increase in 4 locations.

Most CAN prices remained stable. However, there was a -7% price decrease in 1 location and 12% price increase in 4 locations

Most Urea prices remained stable. However, there was a -3% price decrease in 1 location and 12% price increase in 3 locations.

APRIL 2020

Market Comments

The cropping season in East and Southern Africa occurs from November to April, so most fertilizers were already in-country and applied or well down the distribution channel before the impact of Covid 19 began.

There is adequate stock in the country, so no shortage is expected.

SEPTEMBER 2019

Market Comments

Currently there is low usage of fertilizers in the country as the summer season is ongoing. There is no subsidy but a price directive by the government.
New OCP plant in Tanzania
A U$14 million (over 32.2bn/-) fertilizer manufacturing factory will be built in the outskirts of Dar es Salaam soon as negotiations between the government and Morocco based OCP Africa are at advanced stage. OCP Tanzania country manager said that they will manufacture Nitrogen Sulfur and Phosphorus and NSP Zinc fertilizers with high nutrient content suitable for paddy rice production in the seaside district. The plant which will have capacity of over 40,000 metric tons per annum will create thousands of jobs and save the country billions of shillings currently being spent to import artificial fertilizers which local farmers need.
Currently OCP Africa produces different fertilizer that includes Urea and DAP which are used by cereal farmers and those engaged in cotton, vegetable and fruit production, among other commodities. On her part, Tanzania Agricultural Research Institute’s Mlingano Centre researcher, Dr Catherine Senkoro said TARI will work in partnership with OCP Africa to ensure farmers obtain fertilizer that is suitable for their soil type and crop needs.

AUGUST 2019

Market Comments

Generally, there is low usage of fertilizers this month. According to GIEWS remote sensing analysis and the Tanzania Meteorological Agency, the March‑May rainy season was characterized by inadequate precipitation amounts received over several cropping areas, and cereal production is expected at below‑average levels. Particularly, significant crop production shortfalls are expected in northeastern Arusha, Kilimanjaro and Tanga regions, where cumulative seasonal rains were about 40 percent below average.
There is no government subsidy on fertilizers but there is a price directive. ETG is the selected company which imports fertilizers. Most imports are done in bulk and distributed across the country.

JULY 2019

Market Comments

The dry season has begun and no much farming is going on. This translates to low usage of fertilizers across the country. There is no government subsisdy on fertilizers but there is a price directive set by the government although price can change depending on the geographical location of the agro dealers. The one company that won the tender is the only importer of fertilizers.

JUNE 2019

Market Comments

There is low usage of fertilizers this month as farmers are harvesting in most parts of the country. There is no government subsidy but there is price directive set by the government. However, the concept of distance to the agro dealer shops is included in the price directive.

MAY 2019

Market Comments

The usage and sales of fertilizer is increasing in the Central and Northern regions as farmers are busy planting. In the Southern and Lake zone regions the usage is low.
There is no government subsidy, but there is price directive to control the market and inflation.

APRIL 2019

Market Comments

Farmers are still waiting for the rains in Tanzania. The usage of fertilizer in April is low due to the shortage of rains in the country.
The price of fertilizers is still high because of imported costs. There is no government subsidy, but there is price directive by government.

MARCH 2019

Market Comments

The planting season is ongoing and fertilizer demand is high across the country. There is no government subsidy on fertilizers but there is price directive. The high fertilizer prices were attributed to high cost of fertilizer import.

FEBRUARY 2019

Market Comments

The usage of fertilizer in this month is very high because it is the rainy season and farmers are planting. The demand of Urea is quite high now because farmers are planting rice which uses a lot of Urea.
The government of Tanzania still applies price directive, although some agrodealers don’t follow this order and give their own prices.
Tanzania government through government procurement system announced tender for only one company to import once in bulk then other companies purchase and distribute around the country.

JANUARY 2019

Market Comments

This month registered high usage of fertilizers in the Southern part of the country where planting is going on. The demand in other areas is low especially in Central region where planting is yet to start. The price of fertilizer this January is still high because of import cost.
There is no government subsidy, but there is a price directive by the government. The government policy on fertilizer in Tanzania is importing in bulk, and the government also sets prices.

DECEMBER 2018

Market Comments

The usage of fertilizer in this month is still low in the central country regions. In Northern region there is no significant change in prices or demand.
There is no government subsidy but there is directive price. This month of December has recorded high import cost that has resulted in increased fertilizer prices. However, the government still has the directive policy on fertilizer prices. This has discouraged the agro dealers who are stating low profits.

NOVEMBER 2018

Market Comments

The usage of fertilizer in November is still low in the central region because of the low rainfall in the region. In northern region, the demand is high compared to last month due to the high rainfall experienced in the month. The government subsidized price on the fertilizers is yet to be effected but there is directive price as a government policy across the country. This has however discouraged many agro-dealers from stocking fertilizers because of the low profits.

OCTOBER 2018

Market Comments

The fertilizer usage this October is still less due to dry season. The Government still has the directive price for DAP and Urea while other fertilizers are in open market.