With more than 80% of the fertiliser used in South Africa imported, a stable or stronger rand along with limited movements in international crude oil price could help to limit increases in local fertiliser costs.
A January 2019 Input Cost Monitoring report published by the National Agricultural Marketing Council (NAMC), said that between December 2017 and December 2018, the international prices of urea, muriate of potash (MOP), and di-ammonium phosphate (DAP) had increased 43,6%, 29,4% and 0,2% respectively in rand terms.
During the same period, the rand weakened by an average of 8,7% against the US dollar.
“From December 2017 to December 2018, the domestic prices of urea, MAP (mono-ammonium phosphate) and KCl (potassium chloride) increased 15%, 5,8% and 5,7% respectively,” the report stated.
Corné Louw, a senior economist at…