A representative of the Fertilizer Association said that fertilizer exports in 2022 could exceed the US$1 billion mark thanks to businesses taking advantage of opportunities and quenching their thirst for fertilizer globally.
According to data from the General Department of Customs, in October, fertilizer exports reached 160,000 tons, equivalent to $87 million, unchanged in volume but down 7% in value compared to September.
Accumulated in the first 10 months of the year, fertilizer exports reached nearly 1.5 million tons with a turnover of nearly 973 million USD, up 45.5% in volume and nearly 2.6 times in turnover compared to the same period in 2021.
Thus, after the first 10 months of the year, fertilizer export turnover exceeded 73% of the export result for the whole year of 2021 with 559 million USD.
In October, the export price of fertilizer fell by 37 USD/ton compared to September and by more than 28% compared to the peak in January, to 547 USD/ton. This is also the fourth consecutive month that export fertilizer prices have gone down.
However, on average in the first 10 months of this year, the export price of fertilizer increased by 67% over the same period in 2021, to an average of 627 USD/ton.
Phung Ha, Vice President and General Secretary of the Vietnam Fertilizer Association (FAV), said that world experts estimate that there is a shortage of supply in the world, and fertilizer prices may increase again by the end of 2022. and early 2023.
“In 2022, due to the fertilizer situation in the world, Vietnam’s fertilizer exports may surpass the $1 billion mark, a record-high number,” said Mr Phung Ha.
In addition, the FAV representative said that there is still room for enterprises to export fertilizers when the designed capacity of fertilizer factories in Vietnam under the fertilizer production license of the Ministry of Agriculture and Rural Development is up to 29 million tons. while domestic demand is only about 11 million tons.
However, at present, Vietnamese fertilizers are mainly exported to Asian countries such as Cambodia, Malaysia, Laos, Philippines, Thailand, etc. The markets are not interested in the European, Middle East, and Black Sea markets because there is no market. brand name and big shipping cost.
The FAV representative said that urea producers have the advantage of cheaper input costs. Therefore, fertilizer factories are increasing their capacity to meet the needs of the domestic winter-spring crop and expand export markets and bring foreign currency to Vietnam.