Current Inventory of Fertilizers in

the Phils. And Prices of Fertilizers

as of May 15, 2022
Ms. Julieta B. Lansangan
Chief, Fertilizer Regulations Division
May 19, 2022
 Topic Outline
I. Factors Affecting Global Fertilizer Price
Trend
II. Current Fertilizer Inventory of Six Major
Fertilizer Grades
III. Current Fertilizer Price Situation
IV. Measure to Monitor and Stabilize
Fertilizer Supply
 Factors Affecting Global Fertilizer Price Trend:
▪ World Fertilizer Market Situation
The hike in fertilizer prices is a global trend and not in the Philippines
alone. Economic analysts and fertilizer companies in the United States (US)
shared the trend will continue this year.

1. The COVID 19 pandemic brought significant impact to the price trend as each
country tried to secure domestic food production by increasing their crop areas. For
instance, big countries like India, Australia, and Brazil have increased fertilizer
demand than their pre-pandemic requirement.

2. The recent gas shortage in Europe made domestic fertilizer manufacturers to cut
production due to hike in energy prices. The region now has to compete in the global
fertilizer demand. Fertilizer prices in North Africa (Egypt) and the Middle East prices
have been also moving upward.
 Factors Affecting Global Fertilizer Price Trend:
▪ China curtails fertilizer exports:
1. China cut their energy use: reduced energy and carbon use means
reduced fertilizer production of the country;
2. Implementation of China Inspection and Quarantine (CIQ) Policy,
fertilizer exports were curtailed due to complex procedures and strict
measures for export cargoes. Urea, DAP, MOP, NPK and other fertilizer
grades are among the items covered by the CIQ policy; and
3. China has to secure its domestic fertilizer requirement first.
 Fertilizer Price Increase
▪ The reason behind the price increase of various fertilizer grades are as
follows (HeartyChem Corporation):
✓ Urea (nitrogen) - The hike in urea prices started from Europe and aggravated
by the China restrictions for cargo exports until it was felt all over the world.
For instance, Korea is buying it close to USD1,000/MT Cost FR FO in bulk. It
was USD230-240/MT CFR at the beginning of 2021.
✓ DAP (di-ammonium phosphate) - Due to China CIQ policy, DAP prices started
to soar with fixing price now moving close to USD1,000/MT in bulk from
USD600/MT CFR in Korea last September 2021. For the fourth quarter, India
recorded price of Phosphoric Acid at USD1,330/MT CFR in bulk from the
USD170/MT in the third quarter.
 Fertilizer Price Increase
▪ The reason behind the price increase of various fertilizer grades are as follows
(HeartyChem Corporation):
✓ MOP (muriate of potash) - Large volumes of imports from Brazil and the
increased demand in Belarus affected global MOP prices. At the beginning of
2021, it was USD230-240/MT CFR, but it is now close to USD700/MT CFR.
✓ NP/NPK (nitrogen and phosphorous/complete) - With the soar in raw
material prices’, NP/NPK prices are moving upward continuously. This increase
has been propelled mainly by the Chinese export policy on legal inspection. With
ceased China NP/NPK exports, other producers in the world are moving up the
prices along with increasing feedstock prices.
Figure 2. Prices
of DAP, Urea and
MOP from 2006
to 2021.

Most fertilizer
prices soared in
2021, particularly
phosphates and
urea, this is driven
by strong demand
and higher input
costs.
 Increased Cost of Raw Materials
▪ Fertilizer prices have been bolstered by higher input costs. Phosphates
raw material costs, particularly sulfur and ammonia, have increased
sharply as refinery curtailments due to COVID-19 restrictions limited
supplies.

▪ Urea feedstock costs have also risen, including natural gas prices which
jumped in early 2021 due to unusually cold weather.
Figure 3. Tampa
Ammonia CFR and
Tampa Liquid Sulfur
Fob (RHS) material
costs

Sources: Bloomberg;
World Bank
 Philippines a Net Importer of Fertilizers
▪ Local production accounts for only 10% of the country’s fertilizer supply
namely:
✓ Atlas Fertilizer Corporation
✓ Philippine Phosphate Fertilizer Corporation (Philphos) that has only the
capacity to operate at 20% while its raw materials being used are likewise
imported.

▪ Small to medium sized fertilizer manufacturers also contribute to the local

production but in smaller quantities.
Figure 4. Philippines Imports of Fertilizer according to United Nations COMTRADE Database
on International Trade
 Philippines a Net Importer of Fertilizers
▪ About 90% of the country’s needs for fertilizer are mostly imported
from China, Indonesia, and Malaysia. Some are being imported from
Qatar, Canada, Korea, and the Middle East

✓ Philippines Imports of Fertilizers was US$860.91 Million during 2021,

according to the United Nations COMTRADE database on international
trade.
Figure 5. Top fertilizer
producers according to
International Fertilizer
Association, World Bank

Sources: International Fertilizer

Association; World Bank
 Current Fertilizer Inventory of
Six Major Fertilizer Grades
as of May 9-15, 2022

UREA AMMOSUL COMPLETE AMMOPHOS MOP DAP

REGION Total
46-0-0 21-0-0 14-14-14 16-20-0 0-0-60 18-46-0
CAR 3,842 1,688 969 388 259 - 7,146
REGION I 15,837 19,538 71,435 11,924 6,004 - 124,738
REGION II 85,078 71,011 4,753 1,062 - - 161,904
REGION III 20,636 30,863 21,929 13,582 11,192 - 98,202
REGION IV 28,018 160,163 33,517 3,420 1,407 82 226,607
REGION V 67,168 10,531 33,737 7,603 4,049 - 123,088
REGION VI 401,868 208,193 201,774 69,840 163,037 5,825 1,050,537
REGION VII 14,444 7,191 44,747 8,676 4,774 709 80,541
REGION VIII 17,173 5,868 13,235 3,424 5,068 319 45,087
REGION IX 8,393 15,309 5,627 3,314 1,928 430 35,001
REGION X 48,419 32,728 13,162 14,992 8,791 700 118,792
REGION XI 466,728 586,802 227,396 103,831 291,291 11,172 1,687,220
REGION XII 26,120 28,110 16,674 13,478 8,333 3,666 96,381
CARAGA 8,669 11,105 6,339 1,943 3,362 177 31,595
Stock in Bag 1,212,393 1,189,100 695,294 257,477 509,495 23,080 3,886,839
Add: Incoming
564,893 125,400 0 120,000 152,300 208,000 1,170,593
Shipment
Total Stock in Bag 1,777,286 1,314,500 695,294 377,477 661,795 231,080 5,057,432
Total Stock in MT 88,864 65,725 34,765 18,874 33,090 11,554 252,872
 Current Fertilizer Price Situation
CURRENT PRICES OF 6 MAJOR GRADES FERTILIZER PER PROVINCE PER REGION
May 9 to 13, 2022
FERTILIZER GRADES/ PRICE (PHP) PER 50 KG. BAG
UREA (PRILLED) UREA (GRANULAR) AMMOSUL COMPLETE AMMOPHOS MOP DAP
REGION
46-0-0 46-0-0 21-0-0 14-14-14 16-20-0 0-0-60 18-46-0
Price (PhP) Per 50 kg. bag
CAR 3,049.50 3,055.42 1,589.63 2,490.83 2,209.00 2,072.00
REGION I 3,066.00 3,055.37 1,369.33 2,063.90 1,851.61 1,889.70
REGION II 2,990.63 3,059.43 1,529.17 2,535.52 2,375.75 2,068.44
REGION III 3,096.77 2,999.49 1,433.85 2,365.07 2,034.17 2,075.25
REGION IV 2,954.42 3,019.09 1,522.18 2,196.29 1,938.19 2,018.66 2,750.00
REGION V 3,134.21 3,121.09 1,506.71 2,261.52 2,118.03 1,998.80
REGION VI 3,062.69 2,871.89 1,381.95 2,047.98 1,857.47 2,124.60 2,825.67
REGION VII 3,114.62 1,643.44 2,154.38 2,036.88 2,411.88 3,265.00
REGION VIII 2,800.50 3,030.00 1,534.75 2,047.12 1,728.22 1,902.93
REGION IX 2,923.76 1,459.78 2,026.23 1,989.11 2,276.67 2,851.67
REGION X 2,971.24 1,388.07 2,160.57 2,055.55 2,322.93 3,155.28
REGION XI 2,891.67 2,819.38 1,335.22 1,930.57 1,782.66 2,700.08 3,439.29
REGION XII 2,876.75 2,896.25 1,314.50 2,015.00 1,907.75 2,355.00 2,927.00
CARAGA 2,828.78 2,979.11 1,371.66 1,967.38 1,749.72 2,188.82 2,412.50
BARMM
average price 2,982.97 2,991.50 1,455.73 2,161.60 1,973.86 2,171.84 2,953.30
 Measures to Monitor and Stabilize Fertilizer Supply

Fertilizer Watch System is implemented to generate, disseminate, and

formulate policies concerning fertilizer regulations through systematic and
integrated approach.

A. Immediate
1. Consolidation of Importers to come up with large volume transaction (i.e. 500,000MT per
delivery) to avail of discounted price.
2. Provision of Importation Data from the Vat Exempt Certificate issued to Fertilizer Importers
to RFUs.
3. Constant monitoring and surveillance of fertilizer stock inventory and local pricing.
4. Government initiative and negotiation to secure allocations from fertilizer producing
countries (i.e. Iran) in the midst of tight supply/high prices on a G2G arrangement in
collaboration with Fertilizer Industry Association of the Philippines (FIAP) and cooperatives.
 Measures to Monitor and Stabilize Fertilizer Supply

B. Immediate and Medium Term

1. Farmers to implement balanced fertilization strategy (BFS) to lessen
dependence on inorganic fertilizer by introducing non-traditional
fertilizer such as compost fertilizer, fortified organic fertilizer, and
microbial/bio-rational fertilizers in an expanded fertilizer subsidy
program.
2. Capacitate farmers’ federations, cooperatives, and associations, to
directly import fertilizers.
 Measures to Monitor and Stabilize Fertilizer Supply

C. Medium to Long Term

1. Encourage the development of organic fertilizers and other non-
traditional fertilizers and improve information and education on farm
managements with reference to soil fertility mapping of all regions.
 Thank you !
We work for Improved quality of life, safety and productivity!