CountryTotal Consumption
South Korea1,200,000
Figures in MT Product Source: IFA/Internal Presentations/Customs Statistics

Import Demand Structure

South Korea800PG0000800
P=Prilled Urea
G=Granular Urea
Source: IFA/Company Internal Statistics/Customs Statistics All figures in (‘000) MT Product

Distribution Channels

CountryDistribution ChannelRemarks
Malaysia – No Import License NeededPrivate Distribution From Warehouse to PlantationBranding Very Important
Indonesia – SNI Import License Needed for each importer of each product – Import tax appliesSubsidized Distribution by Government. Private Plantations Distributed By Private OperatorsSubsidized urea painted pink to prevent cross over to private market which is double in price
South Korea – No Import License90% of fertilizers consumed distributed by the government co-operativeBranding Very Important
Philippines – Import License For Certain Products Needed – Import tax appliesPrivate Distribution From Warehouse to End User via Wholesale and retail to small holdersBranding Very Important
Thailand – Import License Needed for Each Importer of Each ProductPrivate Distribution From Warehouse to End User via Wholesale and retail to small holdersBranding Very Important
Vietnam – No Import License Needed - Import Tax Applies Private Distribution From Warehouse to End User via Whole sale and retail to small holdersBranding 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.