FERTILIZER ASSOCIATION OF SOUTHERN AFRICA

ANNUAL REPORT 2018/2019

59th ANNUAL CONGRESS

10th - 11th APRIL 2019

SPIER HOTEL, STELLENBOSCH

DR ERIK ADRIAANSE, SASOL

Promotes the responsible, effective, efficient and sustainable use of fertilisers and liming materials.

Represents the Fertilizer and Lime Industries in Southern Africa.

FERTASA

Code of conduct

Conform to the mission and objectives of FERTASA

Act in accordance with the letter and spirit of laws and regulations

Avoid misrepresentation and misleading information

Apply ethical business practices

Apply and promote, production and application practices with due concern for human health and the environment

MOI

2017:Changes in terms of number of directors

2019:

Replacement or re-election of 2 directors every year

Only ordinary members as directors

Permanently employed personnel: Dr Pieter Hauman: CEO Hermien Wouda: Conference and Administrative Officer Candice van der Walt: Communications Officer Prof. Robin Barnard: Technical Advisor Vusi Mashele: Technical Assistant

The Board 6 directors, and one 1 executive director (CEO). Dr Erik Adriaanse - Sasol Dr Nicole Hart – Omnia Tom Mason - Metson Henk Le Roux – NWK James Morotoba – Foskor Martin Bothma – Nutrico

Members Ordinary Members + Affiliated Members = 70

FERTASA Members

0

5

10

15

20

25

30

35

40

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Ordinary Members

Affiliated Members

Nu

mb

er

Year

Committees

Management Committee

Technical Committee

Regulatory Liaison Committee

Educational Committee

Activities

Fertilizer Act and RegulationsCertification of plantsProduct Registration InterventionFertilizer Quality MonitoringPublicationsTrainingEventsSales StatisticsLiaison

Fertilizer BillDraft Fertilizer Bill published on 12/10/2018

FERTASA workshop held on 15/11/2018

FERTASA’s proposed changes submitted on 10/12/2018:

Final products should be registered with certain exemptions

Raw materials to be registered

Licensing of fertilizer entities provided that an advisory committee decides on:

1. Procedure and protocol for licensing

2. Independent auditing entities

FERTASA is strongly opposed to the appointing of assignees

Fertilizer RegulationsGroup 3 to be finalized

Product Registration Intervention

• Registrations handled by FERTASA over the last three years = 666 (244, 187, 235)

• Progress with time reduction. Group 1 and 2 applications completed within 4 – 6 month.

• Group 3 applications have been taking longer but the time for initial evaluation at DAFF has been reduced.

• More than 30 Group 3 products have been approved

• The Group 3 guidelines are still receiving inputs from several groups.

• The procedure for migration of Group 1 or 2 products to Group 3 has been posted on the DAFF website.

• Close cooperation between Fertasa and DAFF in this regard

Certification of Fertiliser Entities

18 out of 34 current ordinary members are certified at this point in time

FERTASA is recognising two auditing companies for this purpose

Quality Monitoring -

• Winter rainfall: 39

• Summer rainfall: 59

• Soil ameliorants: 9

Supported by FERTASA, Sasol Agriculture Trust,

Omnia Fertilizers, DAFF and Grain SA

Publications

• Handbook/Bemestingshandleiding = 876

• Newsletter: quarterly distributed to 1 900

• Articles: 7

• Web: - 4 148 clicks

1. Import/Export data more product specific.

2. Crop plantings for three most relevant provinces.

3. Fertiliser use calculator

Fertiliser Handbook Sales (Eng. + Afr.)

0

100

200

300

400

500

600

700

800

900

1000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Nu

mb

er

Year

Training BASOS/FACTS course

0

10

20

30

40

50

60

70

80

90

100

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Nu

mb

er

Year

Events

2018 Congress

2018 Technical Symposium

Workshop on Draft Bill 15/11/2018

Staff participation at the Argus International Congress

Dr Pieter Hauman –Program Chair

Prof Robin Barnard – Session Chair

Congress Delegates

0

20

40

60

80

100

120

140

160

180

200

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Nu

mb

er

Year

Technical Symposium Delegates

0

50

100

150

200

250

300

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Nu

mb

er

Year

FERTASA Workshop attendance

Nu

mb

er

Year

0

20

40

60

80

100

120

140

2016 2017 2018

Registrations

Fertilizer Bill

Bio Fertilisers

Post Symposium

Subsoil Acidity

Sales Statistics

Fertiliser imports/exports are readily available but collated by FERTASA

Prediction Model based on areas planted/crop/magisterial district

FERTASA R359 000 for Mapumalanga in 2018

R450 000 for the Eastern Cape in 2019

Independent collection of sales statistics by AGFACTS – not feasible.

Government to finance annual satellite imaging including all crops for all provinces:

Crop Estimate Committee – Food security

Monitoring of Agricultural Development on Governmental land.

Liaison

DAFF – Department of Agriculture, Forestry and Fisiaries

Grain SA – Grain Producers

Agri SA – South African Agriculture

Agbiz – Agricultural Business Chamber

AgriLasa – Agri laboratory association of Southern Africa

ESAF - East and Southern Africa Fertilizer trade platform

ADASA - Agro Dealers Association of South Africa

SACNASP - South African Council for Natural Scientific Professions

IFA -International Fertilizer Association

Finances

Liquid, solvent and sound – clean audit

Non-profit organisation

SARS Compliant

Agriculture in particular had a difficult year:- 4,8% from 2017

Decrease in field crops and horticultural products

Agriculture contributed R74.157 billion in 2018

0

2

4

6

8

10

12

14

16

18

0

200

400

600

800

1000

1200

1400

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

R/$

$/

ton

Ammoniak / Ammonia Ureum / Urea DAP MOP R/$

International Fertilizer Prices

A large portion of the cost of fertilizer is locally derived.

Increased taxes and levies

Inefficient infrastructure, basic services and rail operations

Expensive, unreliable electricity

Unproductive labour

FERTILISER COSTS IN RELATION TO CURRENT PRODUCTION COSTS

3234 34

40

34

2422

0

5

10

15

20

25

30

35

40

45

Fe

rtilis

er

co

sts

in

re

lati

on

to

pro

du

cti

on

co

sts

(%

)

Crop

Fertiliser consumption, production, exports and imports in South Africa

0

0,5

1

1,5

2

2,5

Consumption Production Exports Imports

2016 2017 2018

Ph

ys

ica

l to

ns

(m

illi

on

)

Calculated from crop areas and approximated fertilizer application (PE Haumann Fertasa)

0

5

10

15

20

25

30

35

40

45

2016 2017 2018

Production as % of Consumption Production as % of Consumption + Exports

Fertiliser production in relation to consumption and consumption + exports

(%)

Calculated from crop areas and approximated fertilizer application (PE Haumann Fertasa)

Opportunities

Agricultural development of 34 million ha Agricultural Land (36.4%) belonging to Government in South Africa ( Agri SA Land Audit 2017)

Supporting the Farmer Development Program of Grain SA –From Subsistence – Abundance – Beyond (2016 - 2019: 1776 - 7247ha; 1674 - 5174 farmers)

Development of Agricultural land in Africa

Threats

Land expropriation without compensation of Developed Agricultural Land -

Killer Assumption

Climate change – large variation in rainfall and production

Electricity supply

Transport costs

The relevance of fertilisers

Food security: Access to sufficient, safe and nutritious food More food and fiber for more people than this planet would otherwise support

Extend the lifecycle of food Disease resistance of crops

Pollution kept to insignificant levels Increase in net profit to producers

CONCLUSIONS

THE FERTILISER INDUSTRY:

A difficult year due to very dry conditions especially in the summer rainfall areas

Investors confidence in this sector has dropped due to political uncertainties, unreliable supply of electricity and high production costs

Considerable contributions towards Agricultural Development have been made. The focus should remain on 34 million ha = 36.4% still to be developed land and not on expropriation without compensation of already developed Agricultural land.

FERTASA:

Has shown considerable growth in terms of membership, attendance at events, fertiliser handbook sales and FACTS training

Has played an increasing role in Legislative matters such as the Fertilizer Act, Regulation, Product Registrations, Fertilizer Monitoring and Certification of Production Facilities.

Recognizes its dependence on International Fertilizer Companies, Organized Agriculture, Academic Institutions as well as National Government. This is also reflected in the representation of speakers at this Congress.

A WORD OF TANKS

All members of FERTASA for your continuous support

FERTASA Staff members for your dedication and ever readiness to assist

The CEO of FERTASA in particular for your initiatives and leadership

The Board of Directors for your inputs, guidance and team spirit

All committee members for your invaluable contributions

To all presenters at this Congress, the Technical Symposium and Workshops for your time and effort to deliver high quality presentations.

To all delicates at this particular Congress for your presence and participation - may this be the best ever – Enjoy!!!