Fertiliser Prices Skyrocket

As the farming season beckons, farmers are already beginning preps by stocking on Inputs. This is usually a good move as prices of inputs tend to spike as soon as the rains start falling. This year is different, however, as fertilizer prices are already high.

The price of a 50kg bag of fertilizer increased to an average of US$94 by the end of June 2022 compared to US$55 during the previous cropping season. The price increases are being attributed to the current Ukraine/Russia conflict, with the two East European countries the main global producers of fertilizer.

High fertilizer prices coupled with decreasing commodity prices could discourage farmers. Farmers bemoaned the fact that the government seemed to have floated the fertilizer prices but was maintaining a price cap on the producer price. Farmers in Shamu village, Murehwa district said that it was not possible to produce enough to sell to GMB if fertilizers remained This high.

“When a bag of fertilizer is going for $90, I will just plant maize on a small portion for me and my family. The rest I will put other seeds. The maize prices when they buy from us at the GMB is too low for us to buy such expensive fertilizer,” said Mr. Aaron Rushangwa a local farmer.

Another farmer Mrs. Portia Havazivani urged the government to take immediate action to deal with the challenge, “Government must take action soon otherwise our farming activities will fall behind. If they cannot control the prices then at least they should provide us with the inputs on time.”

Although the Meteorological department has forecasted normal-to-above-normal rainfall this coming rainy season, the Farmers are worried about the fertilizer prices.

A local financial service, IH Securities, has implored the government to ensure the prices of fertilizers come down to enable farmers to take advantage of the rainy season and maximize production.

However, above-normal rainfall for the 2022/23 farming season is being forecasted which could potentially result in increased production. IH securities, which offers brokerage and advisory services, noted that companies such as Hippo present investment opportunities. It added:

“These are companies with the ability to exercise monopoly and price leadership. We are also attracted to companies with good management and a culture of value creation for shareholders.”