| Country | Total Consumption |
|---|---|
| TOTAL | 37,900,000 |
| Malaysia | 5,200,000 |
| Indonesia | 12,000,000 |
| South Korea | 1,200,000 |
| Philippines | 2,000,000 |
| Thailand | 5,500,000 |
| Vietnam | 12,000,000 |
Figures in MT Product Source: IFA/Internal Presentations/Customs Statistics
Import Demand Structure
| Country | UREA | AS | DAP | MAP | NPK | Total |
|---|---|---|---|---|---|---|
| TOTAL | 4900 | 3300 | 1920 | 250 | 1800 | 11945 |
| Malaysia | 300P | 800 | 100 | 25 | 250 | 1250 |
| Indonesia | 300P | 800 | 300 | 50 | 250 | 1700 |
| South Korea | 800PG | 0 | 0 | 0 | 0 | 800 |
| Philippines | 800PG | 600 | 120 | 25 | 100 | 1645 |
| Thailand | 2200G | 100 | 500 | 100 | 1000 | 3900 |
| Vietnam | 500PG | 1000 | 900 | 50 | 200 | 2650 |
P=Prilled Urea
G=Granular Urea
Source: IFA/Company Internal Statistics/Customs Statistics All figures in (‘000) MT Product
G=Granular Urea
Source: IFA/Company Internal Statistics/Customs Statistics All figures in (‘000) MT Product
Distribution Channels
| Country | Distribution Channel | Remarks |
|---|---|---|
| Malaysia – No Import License Needed | Private Distribution From Warehouse to Plantation | Branding Very Important |
| Indonesia – SNI Import License Needed for each importer of each product – Import tax applies | Subsidized Distribution by Government. Private Plantations Distributed By Private Operators | Subsidized urea painted pink to prevent cross over to private market which is double in price |
| South Korea – No Import License | 90% of fertilizers consumed distributed by the government co-operative | Branding Very Important |
| Philippines – Import License For Certain Products Needed – Import tax applies | Private Distribution From Warehouse to End User via Wholesale and retail to small holders | Branding Very Important |
| Thailand – Import License Needed for Each Importer of Each Product | Private Distribution From Warehouse to End User via Wholesale and retail to small holders | Branding Very Important |
| Vietnam – No Import License Needed - Import Tax Applies | Private Distribution From Warehouse to End User via Whole sale and retail to small holders | Branding Very Important |
Competitive Structure
- All fertilizer importers are price sensitive due to squeezed margins
- Competition for market share and volume is the order of the day
- Margins have deteriorated significantly over the years – and most business operates on pennies rather than dollars. Commodity prices have fallen and USD rates have gone up versus local SE Asian currencies in general.
- However, since importers are all buying more or less from the very same sources – effective and efficient logistics are key factors for profitability.
- Granular urea is mostly imported to the region from the Arab Gulf with local supplies from P.R. China, Malaysia and Indonesia – Prilled urea from P.R. China and Indonesia. Processed phosphates from P.R. China – and emerging sources are Saudi Arabia and Morocco.
- Those importers which can take advantage of “critical mass” on volume purchases, freight savings, currency fluctuations, credit terms and pre-payments from end users – will have a distinct advantage.
- This is particularly important in countries like the Philippines and Vietnam where discharge rates are notoriously slow and inefficient – thus importers with own facilities are much better off than others.