Africa's agriculture and value addition magazine

New supplier Samsung C&T wins fertilizer bid

Posted in Production, Nutrition & Food Security

ETHIOPIA - Samsung C&T, a Chinese subsidiary of South Korean Samsung C&T Corporation, is supplying fertilizers to Ethiopia’s Agricultural Inputs Supply Enterprise (AISE) at lower prices than previous purchases.

A new entrant into the market, Samsung has offered 319.87 dollars, 324.87 dollars and 326.87 dollars for 159,000tn of Urea fertilizers to be delivered in three installments.

Its parent company is known for its operation a multiple areas of investments including trading of industrial commodities such as chemicals, steel and natural resources, as well as organising projects such as power plant, renewable energy and infrastructure development.

These offers were made in the bid for purchase of 228,000tn Urea and 81,000tn of NPS fertilizer.

The Enterprise opened the bid on November 5, 2015 and now is in process of opening letters of credit (LC) for their importation.

Samsung’s prices are a little lower than the lowest price the Enterprise had obtained in its September 2015 tender.

That price was Agri Commodity’s winning offer of 335 dollars for one lot and 523.3 dollars for another in a total order for the supply of 100,000tn of urea. The lowest price Agri Commodity had offered a year earlier was 381.5 dollars.

The price decline could be a result of the fall in the price of oil on the international market, said the Enterprise’s Marketing Head. The price of urea was down in Chinese markets from 263 dollars in September to 248 dollars in November.

Yara will supply 60,000tn and 37,200tn of NPS for 487 dollars and 491.85 dollars a tonne, respectively. Trammo and Amropa AG gave 322.10 dollars and 336 euro a tonne for bulk shipment of 32,200tn and 41,000tn, respectively.

This year, the Enterprise bought Urea and NPS fertilizers in two rounds. In the first round, it bought 498,000tn of NPS-B fertilizer in 10 lots.

Yara Switzerland supplied 43,000tn for 505.7 dollars a tonne, and two lots of each 50,000tn for 520.7 dollars and 526.7 dollars a tonne.

End Agro supplied two lots at 518.33 dollars and 533.33 dollars a tonne.

The remaining three lots were awarded to Mid Gulf, Iskenderun – a Turkish company, and Trammo at prices of 453 euro, 551 dollars and 312.95 dollars a tonne, respectively.

Out of this order, a total of 248,599tn has so far arrived at the Port of Djibouti between November 2015 to January 2016. As of last week, there was only 198,599tn of Urea and NPS at the Port of Djibouti.

Another 100,000tn shipment is expected to arrive at Port Sudan by the end of February.

The purchase was made for Amhara, Oromia and Southern Nations Nationalities & Peoples’ states, for distribution to farmers through cooperatives for the coming Belg & Meher seasons.

The latest purchase is expected arrive between March and June, 2016.

The Agricultural Inputs Supply Enterprise is a public enterprise established in 1985 and accountable to the Ministry of Agriculture & Natural Resources (MoANR).

Its fertilizer procurement committee has members from MoANR, the National Bank of Ethiopia (NBE), the Commercial Bank of Ethiopia (CBE) and the Ministry of Finance & Economic Cooperation (MoFEC).

More tenders are expected during the remaining months of the year, to meet increasing regional demand, said the marketing head.

February 14, 2016;