A fertiliser production line of the Petro Vietnam Ca Mau Fertiliser JSC. (Photo: VNA)As organic agriculture has begun to gain traction in the world,organic fertiliser exports reached 2.91 million tonnes last year, up 14%year-by-year. The number of organic fertiliser factories hit 468, four times ashigh as the number in 2017.
However, high exports are only part of the story. In fact, Vietnam imported3.44 million tonnes of fertilisers last year as some types of fertilisers couldnot be produced domestically. Of the imports, 0.46 million tonnes are organicand 3 million tonnes are non-organic.
The Ministry of Agriculture and Rural Development revealed that there were 792fertiliser factories in the country in 2022, 112 factories lower than thefigure in 2021.
The ministry remarked that the mounting prices of fertilisers in 2022were pushing up agricultural costs, driving many farmers intounprofitability.
Specifically, fertiliser costs increased from around 25% of their total coststo roughly 50%, surpassing the rise in their revenues.Substandard fertilisers added to their woes by causing damage to theircrops.
As such, the Vietnam Fertiliser Association (VFA) urged domestic fertiliserproducers to invest further in advanced technologies to improve efficiency andcut costs, which would reduce fertiliser prices to the relief offarmers.
"Production should be distributed equally between non-organic and organicfertilisers as the latter has become a trend globally," added NguyenTri Ngoc, VFA deputy director.
The International Fertiliser Association (IFA) had three scenarios for theglobal fertiliser market in 2023.
Under the worst-case scenario, global fertiliser demand would fall in 2023 andstand at 194.6 million tonnes in 2026. Under the midpoint scenario,global demand would reach 201.1 million tonnes in the next three years.Under the best-case scenario, the figure is adjusted to 211.1 million tonnes.
Fertiliser prices, meanwhile, are not likely to drop in 2023 underall three scenarios.
Over the past 50 years, global fertilisers witnessed three booms in prices, onebetween 1973-1974, one between 2007-2008, and one from 2021 until now.
The recent boom in fertiliser prices was triggered by the balloon in prices ofnatural gas, which accounts for about over 70% of fertiliser production costs.Some factories which were unable to transfer higher costs to higherfertiliser prices have been left with no choice but to shut down.
The Russia-Ukraine conflict fuelled the situation by causing global supplychain disruptions. Specifically, Russia has suspended its fertiliser exports tocater to domestic demand. The suspension will remain in effect until May 2023./.
VNA
