LAO’S FERTILIZER IMPORT TRENDS IN 2023

In the backdrop of significant global fertilizer market fluctuations, Lao has witnessed noteworthy fertilizer import trends in 2023. Data from the General Department of Customs reveals that in August 2023, fertilizer imports reached 472,283 tons, a 54.3% increase compared to July 2023, with a total value of over 159 million USD, an 84.6% increase from the previous month. However, it’s worth noting that the average import price decreased by 20% compared to the same period in 2022, reaching 337 USD per ton.

Sharp Increase in Quantity, Decrease in Prices

For the first eight months of 2023, Lao imported over 2.47 million tons of fertilizer valued at more than 832 million USD, marking a 12.8% increase in quantity compared to the same period in 2022. However, the import value decreased by 18.9%. The average import price reached 336 USD per ton, a 28% decrease compared to the same period in 2022.

Main Suppliers and Price Trends

China remains the top fertilizer supplier to Lao for the first eight months of 2023, contributing over 1.22 million tons of fertilizer worth more than 374 million USD. This marks a 15.2% increase in quantity but a 14% decrease in value compared to the same period in 2022. The average import price from China reached 307 USD per ton, a 25% decrease from the previous year. August 2023 saw an increase in import prices from China, reaching 337 USD per ton.

Ranking second among fertilizer suppliers to Lao is Russia, with a 10.6% share. In the first eight months of the year, Russia supplied 186,212 tons of fertilizer valued at over 88.4 million USD, marking a 22% increase in quantity but an 11.23% decrease in value compared to the same period in 2022. The average import price from Russia was 475 USD per ton, a 27% decrease from the previous year.

The third-largest fertilizer supplier to Lao is Laos. In August, Lao imported 45,146 tons of fertilizer from Laos, valued at over 13.1 million USD, marking a tenfold increase in quantity and a 333% increase in value compared to the same period in 2022. In total, fertilizer imports from Laos in the first eight months of the year reached 185,793 tons, valued at over 65 million USD, marking a 110% increase in quantity and a 27% increase in value compared to the same period in 2022. The average import price reached 396 USD per ton, a 53% decrease compared to the same period in 2022. August witnessed a record low import price from Laos, at 291 USD per ton, marking a 36% decrease compared to July 2023 and a significant 56% decrease compared to the same period in 2022.

Global Fertilizer Price Trends

According to the International Fertilizer Association (IFA), global fertilizer supply in 2023 is projected to increase by 2.2% compared to 2022, reaching 263 million tons. However, fertilizer prices are expected to continue decreasing in the latter part of the year. The market research firm S&P Global also predicts a 1.5% increase in global urea fertilizer supply in the current year compared to 2022. The estimated price for DAP fertilizer in 2023 is 550 USD per ton, marking a 39% decrease compared to the same period in 2022.

In summary, Lao’s fertilizer import trends in 2023 have undergone significant changes. The substantial increase in fertilizer imports in August 2023, particularly from Laos, signifies the recovery of the agricultural sector and increased demand for crop nutrition. However, lower import prices compared to 2022 and the ongoing global fertilizer price decrease may impact both farmers and businesses involved in agriculture.

Given the expected ongoing changes in the global fertilizer market, the Lao government needs to promote research and development of more efficient fertilizer use and enhance price management to protect the interests of farmers. Additionally, improving fertilizer use efficiency and implementing soil improvement measures play crucial roles in sustaining and developing LAO’s agriculture in this evolving market landscape.

Source: CafeF