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Magnesium phosphate production outstrips domestic demand
Vietnam’s fertiliser production has so far met 100 percent of domestic demands for calcium magnesium phosphate and a half of the demand for urea fertilizer reported, the Ministry of Agriculture and Rural Development (MARD).
According to the ministry’s report, delivered at a seminar on the potential of the fertiliser market held in Hanoi on July 15, Vietnam now has nearly 300 fertiliser producers. Every year, the country produces around 1 million tonnes of phosphate, including 520,000-550,000 tonnes of magnesium phosphate.
With such a capacity, the country is also able to export phosphate and NPK fertiliser to Japan, Australia, Malaysia, Taiwan, Thailand, the Philippines and Indonesia .
However, the country still has to import other fertilisers such as potassium and diammonium phosphate (DAP).
This year, the domestic demand for fertiliser is estimated to be about 7.8 million tonnes, including 1.7 million tonnes of urea fertiliser, 1.85 million tonnes of NPK, and 700,000 tonnes of DAP.
By the end of the second quarter of this year, Vietnam had imported 2.1 million tonnes of fertiliser worth US$665 million, a decrease of 6.6 percent in volume and 60 percent in value as compared with the last year’s figures thanks to the lower prices of imported fertiliser.
China is now Vietnam ’s main fertiliser supplier, providing 40 percent of its total import volume.
At the seminar, which was held by the Information Centre for Agriculture and Rural Development (AGROINFO), agricultural experts analysed and discussed factors that may have had an impact on Vietnam’s fertiliser market.
AGROINFO’s Truong Hong Kim said the supply for the domestic market is expected to be more than enough in the second half of this year. However, she warned that the prices may rise slightly due to fluctuations in the import prices of crude oil and coal on the world market, as well the affects of tax policies.
However, the Vietnam-Japan Fertiliser Company, said that domestic fertiliser prices cannot be raised, as farmers have seen a decrease in the prices their products earn, making them more careful when planning investment to develop production.
In addition to fertiliser, AGROINFO also plans to organise a number of seminars on the development of the markets for five other items: livestock feed, rice, aquatic products, insecticides, meats and other foodstuffs.
These kinds of seminars will help businesses and farmers to access updated information on prices, the markets and the supply and demand of each item, helping growers to come up with effective and realistic plans for production, particularly in the context of the current global economic crisis, stressed AGROINFO Director Pham Quang Dieu.
vov, vietnamplus
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