GHANA FERTILIZER MARKET

Major Ghana Fertilizer Market Drivers

The Ghana fertilizer market is projected to rise because of a growing need for food production, expansion of the agriculture industry, rising aim on environmental concerns and sustainable agriculture, and increasing need for organic fertilizers. Traditionally, the US has been a key supplier of fertilizer to Ghana, exporting USD 11.4 million worth during 2020. However, this figure declined to USD 4.7 million during 2021. While different local and international economic factors are propelling the fertilizer market dynamic across Ghana, there persists an urgent requirement for competitively priced fertilizer across the country. U.S. suppliers of organic fertilizer, and chemical fertilizer, coupled with agriculture technology solutions delivering alternatives to conventional chemical fertilizers stand to attain significant prospects across Ghana. The Commercial Service Ghana is actively looking for interested U.S. market players willing to discover these opportunities and can facilitate the introduction of new products and traders to government authorities and end-users across the country.

In addition, Ghana relies heavily on imported inorganic fertilizer, predominantly Phosphorus/Nitrogen/Potassium blends. Traditionally, many fertilizers received subsidies through the Government of Ghana’s Planting for Jobs and Food initiative. During 2021, Ghana imported nearly 239k metric tons of fertilizer. However, in years preceding spikes in international prices, the Ghanaian Ministry of Food and Agriculture typically bought between 250k to 350k tons yearly, while the Ghana Cocoa Board procured 100k tons yearly. At the beginning of 2022, a convergence of international supply shortages and soaring international prices introduced a perfect storm. This situation was compounded by the Ghanaian Government’s decision to decrease subsidies and delay payments to suppliers, propelled by budgetary constraints.

By 2022, the supply challenges in the Ghana fertilizer market will be considerably improved. However, the cost of available fertilizer remains prohibitively high for different farmers in Ghana. The sharp depreciation of currency in Ghana, specifically against the U.S. dollar, during 2022 further difficult the affordability of imported fertilizers across the domestic market. The exorbitant cost of financing, often exceeding 30% interest rates, poses an additional challenge for farmers looking to gain fertilizer. In addition, the delivery of fertilizer to farmers in remote locations continues to be a constant, further complicating admittance to these essential agricultural inputs.

Moreover, due to increasing costs, the agricultural sector has observed different market adaptations. These include decreased fertilizer utilization, cultivation on smaller land locations, and a shift among farmers from maize to soybeans, a crop demanding less fertilizers. Furthermore, Ghana has intensified its initiatives to transition from solely blending imported fertilizer to domestic production. Moroccan phosphate producer OCP is collaborating with the Government of Ghana to improve an industrial fertilizer complex within the country. This complex would integrate Moroccan phosphorus resources with Ghanaian natural gas to produce different fertilizers, comprising urea, NPK, ammonia, and di-ammonium phosphate. Feasibility studies for the plant, anticipated to have an annual capacity of one million tons, have been financialized. However, the construction of the plant has not commenced yet. Meanwhile, domestic production of organic fertilizer, using inputs including cocoa industry waste, is gradually growing, although at a slow pace.

Segments covered in the Report:

The Ghana fertilizer Market has been segmented on the basis of Type and Application. Based on the Type, the market is segmented into Phosphatic Fertilizers, Nitrogenous Fertilizers, Secondary Macronutrient Fertilizers, Potassic Fertilizers, Micronutrient Fertilizers. Based on the Application, the market is segmented into Pulses and Oilseeds, Grains and Cereals, Fruits and Vegetables, Others. The Nitrogenous Fertilizers segment is further segmented into Calcium Ammonium Nitrate, Urea, Ammonium Sulfate, Ammonium Nitrate, Anhydrous Ammonia, Others. The Phosphatic Fertilizers segment is further segmented into Di-ammonium Phosphate (DAP), Mono-ammonium Phosphate (MAP), Triple Super Phosphate (TSP), Single Super Phosphate (SSP), Others. The Potassic Fertilizers segment is further segmented into Sulfate of Potash (SOP) and Muriate of Potash (MOP).

Market Segmentation

Ghana fertilizer Market by Type

·         Nitrogenous Fertilizers

• • • Urea
    • Calcium Ammonium Nitrate
    • Ammonium Nitrate
    • Ammonium Sulfate
    • Anhydrous Ammonia
    • Others

·         Phosphatic Fertilizers

• • • Mono-ammonium Phosphate (MAP)
    • Di-ammonium Phosphate (DAP)
    • Single Super Phosphate (SSP)
    • Triple Super Phosphate (TSP)
    • Others

·         Potassic Fertilizers

• • • Muriate of Potash (MOP)
    • Sulfate of Potash (SOP)

·         Secondary Macronutrient Fertilizers

·         Micronutrient Fertilizers

Ghana fertilizer Market by Application

• • Grains and Cereals
  • Pulses and Oilseeds
  • Fruits and Vegetables
  • Others