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FERTILIZER SITUATION UPDATE

FERTILIZER SITUATION UPDATE. J.T. CHAMUKA. PRESENTATION OUTLINE. Projected Fertilizer Supply Production Capacity Key Success Factors Distribution network Challenges. PROJECTED FERTILIZER SUPPLY 2013/14 SEASON (000 Tonnes ). PRODUCTION CAPACITY.

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FERTILIZER SITUATION UPDATE

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  1. FERTILIZER SITUATION UPDATE J.T. CHAMUKA

  2. PRESENTATION OUTLINE • Projected Fertilizer Supply • Production Capacity • Key Success Factors • Distribution network • Challenges

  3. PROJECTED FERTILIZER SUPPLY 2013/14 SEASON (000 Tonnes)

  4. PRODUCTION CAPACITY • Compounds – capacity has been shown up to the end of the main planting season. • Blends – the local industry has idle blending capacity • Top dressing – more Nitrogen can be availed if funding is available • Gypsum – 30 000 tonnes/year

  5. KEY SUCCESS FACTORS • Timing • Various supply contracts to be in place for raw materials and imports • Funds for raw mats, utilities, logistics • Logistical challenges – both the ports and the railways get badly congested esp in rainy season. • Funding • Enough, affordable and timely availability of funding • Clearing of outstanding arrears by clients

  6. DISTRIBUTION NETWORK • Well established Distribution Network • Coverage in key agricultural areas • Company depots, stockists & some agro-dealers • Retail chains e.g. OK, TM, Farm & City, GMBs • Default rate from stockists and agro dealers remain a major challenge

  7. CHALLENGES • Liquidity challenges • Defaulting debtors - force cash business • Limited capacity to buy inputs by farmers - limited lines of credit for farmers (and fertilizer industry) • Low farmer productivity • Current customer credit rating information • Dumping of product into the country • Raw material supply chain bottlenecks • Public utilities performance-ZESA, NRZ, Municipality

  8. THE END

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