Egypt Sees Shortfall in Local Fertilizer Market

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Researched by Industrial Info Resources (Sugar Land, Texas)--Fertilizer prices in the Egyptian market have risen 40%, despite the presence of 140 factories supplying the domestic market, including 15 large factories for the production of nitrogen fertilizers and phosphate fertilizers. In addition, there are 125 factories for the production of low-cost, high-value mixed fertilizers, which have a total investment of $5.6 billion.

The sector has a production capacity of between 10 million and 11 million tons annually, according to Amr Assal, chairman of General Authority for Industrial Development, in an interview with Al-Shark Al-Awsat. He indicated that Egypt has suffered in the recent period of acute crisis fertilizer shortages, although the Egyptian government subsidizes the fertilizer market annually by about $127 million.

To meet the increase in local demand and stabilize prices in the fertilizer market in the next three years, Egypt plans to establish 65 factories for the production of fertilizers, including 50 factories for the production of low-cost, high-value mixed fertilizer, and 15 factories for the production of phosphate fertilizers, Assal said. Total investment is estimated at about $545 million, and Egypt's production of fertilizers is expected to reach 20 million tons in 2013.

The most significant deal in the fertilizer market this past week was when Orascom Construction Industries acquired all the shares of Egyptian Fertilizers Company, which have a total value of $1.59 billion.

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