Higher DAP prices hit Zambia fertilizer production

20 September 2007 14:40  [Source: ICIS news]

JOHANNESBURG (ICIS news)--The rising cost of raw materials has caused Nitrogen Chemicals of Zambia (NCZ) to target reduced production of ‘D’ compound fertilizer despite high demand, according to the Times of Zambia.

 

The company is targeting production of about 31,000 tonnes/year of Compound D in 2007 from 36,000 tonnes/year in 2006. 

 

The newspaper quoted NCZ general manager Reuben Mulenga as saying the cost of raw materials including Diammonium Phosphate (DAP), Muriate of Potash (MOP) and Ammonium Sulphate (AS) had affected the price of finished products.

 

DAP, which is mainly imported from South Africa, is the major input required in the manufacture of Compound D fertilizer.

 

A spokesperson for Foskor which supplies NCZ with between DAP 5,000 tonnes/year and 15,000tonnes/year from its Indian Ocean Fertilizer plant in Richards Bay, said global demand and the shutting down of old plants globally have driven prices up from between $240/tonne and $300/tonne to $430/tonne to $450/tonne in the past two years.

 

About 25,000 tonnes of NCZ’s Compound D fertilizer will go to the Ministry of Agriculture and Cooperatives in 2007 under the Fertilizer Support Programme (FSP).

 

NCZ is seeking funding for an additional 15,000 tonnes to meet demand.

By: Mark Allix
+44 20 8652 3214

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