The Sunday Mail
Desire Ncube Fertiliser manufacturing companies have in two months slashed prices from an average US$38 to UDS$26 per 50kg, with indications these could fall some more as producers restore viability. The Sunday Mail understands that the price fall is a result of a US$120 million cash injection into fertiliser companies by the Government. Prices were first reduced two months ago resulting in 50kg of compound D and ammonium nitrate costing an average US$30. Prices fell again with 50kg of compound D selling for US$25 and ammonium nitrate for US$27.
Fertiliser supplier Chemplex Corporation CEO Mr Misheck Kachere said there was a high possibility that prices would be reduced further. He attributed the price fall to increased capacity utilisation which had seen companies operate at 80 percent this year compared to about 30 percent in 2014. “We managed to acquire funds from the Reserve bank of Zimbabwe RBZ and some commercial banks,” said Mr Kachere.
“Dorowa Minerals, the sole producer of phosphate, received US$35 million while Zimphos obtained US$10 million. ZFC and Sable Chemicals accessed financing from Preferential Trade Area and Agribank. “Our cost of production has gone down and eventually prices have to fall. We are still monitoring the situation and we expect prices to go down further by the end of the season.”
Mr Kachere said the company had enough fertiliser stocks for this summer cropping season. The country requires about 200 000 of compound fertilisers and the same quantity of ammonium nitrate.
