AN fertiliser shortage looms

While Government continues with its agricultural input scheme to 1,6 million households, the fertiliser industry is in need of a US$50m capital injection to be able to meet demand for the current season

Golden Sibanda Senior Business Reporter
SABLE Chemicals requires an estimated US$50 million for procurement of raw materials and uninterrupted production for the fertilisers needed for the 2013/14 agricultural season. Deputy chairman Mr Misheck Kachere said in an interview last week on Friday that the amount required however, includes the value of what is already in stock and awaiting distribution to farmers. He said if credit could be extended to farmers to ensure they can afford to purchase of fertilisers already in stock a revolving figure of US$50 million would suffice the company’s needs.

“The A2 farmers do not have money; banks also don’t have money. We are hoping there could be injection into banks such as Agribank and CBZ bank for farmers to get money,” he said.

Companies and individuals alike are reeling from a choking liquidity crisis pervading an economy ravaged by effects of decade long economic embargoes imposed by Western countries. A total of 150 000 tonnes of ammonium nitrate and 150 000t of compound D fertilisers are required for the 2013/14. While there could be enough of compound D, there may be shortages of AN.

While Sable is the single producer of nitrogenous fertilisers, two manufacturers in the country produce compound D fertilisers and these are Windmill and Zimbabwe Fertiliser Company.

“This year, which is not different from last year, the requirement is 300 000t, which is 50-50 basal compounds (compound D) and top dressing commonly referred to as AN,” Mr Kachere said.

Production of fertilisers at Sable Chemicals, the country’s single biggest producer, is limited by capacity constraints. The fertiliser manufacturing company is operating at 25 percent of capacity.

While it has capacity to produce 240 000t, because of funding constraints Sable will only be able to produce 70 000t this year. A total of 50 000t of AN fertiliser has already been produced.

Mr Kachere said manufacturers and traders will have to import a total of 100 000t of AN fertiliser, but while most of it was likely to be brought in, a 10 000t to 15 000t shortfall is projected.

Announcing Government’s US$161 million agriculture support facility for the 2013/14 season Finance and Economic Development Minister Patrick Chinamasa expressed fears about fertiliser shortage. Agriculture is the second biggest contributor to Gross Domestic Product.