Australia's fertilizer sales fell to a six-year low last year, driven by the severe drought on the east coast.
But the outlook for the coming application season is firmer, despite the impact of the Covid-19 outbreak, after greater rainfall across the east coast states.
The three main fertilizer consuming states of New South Wales (NSW), Victoria and Western Australia (WA) all saw falls that drove national sales to fall by 8pc from a year earlier to 5.56mn t, the lowest level since 2013, preliminary statistics from Fertilizer Australia show. NSW and Queensland registered the most dramatic sales falls as farmers and growers experienced successive, extreme and prolonged drought conditions.
NSW fertilizer sales totalled 812,000t product, down by 30pc. Queensland fertilizer sales fell by 20pc to 514,000t. Victoria and WA saw sales fall by 2pc to 1.3mn t and by 3pc to 1.9mn t respectively.
Nitrogen
Total urea sales, the country's leading fertilizer product, fell by 7pc to 1.7mn t product, of which imports totalled 1.49mn t and the balance was domestically produced. This marked the third year of successive falls from the record high of 2.1mn t in 2016 and the lowest sales level since 2012.
NSW nitrogen sales fell by 35pc to 171,000t nutrient, while Queensland registered a 19pc drop to 151,000t nutrient. WA also saw a reduction of 4pc to 416,000t nutrient. National nitrogen sales fell by 8pc to 1.24mn t nutrient.
An exception within nitrogen was UAN, which saw sales rise by 23pc to 515,000t product last year, driven mostly by firmer use in WA linked to farm consolidation and increased large-scale spraying.
Phosphates
Total DAP sales rose by 1pc to 379,000t but leading phosphate product MAP fell by 5pc to 839,000t.
Phosphate fertilizer sales in NSW fell by 19pc to 80,000t nutrient, while they were also down by 16pc in Queensland to 18,000t nutrient and dropped by 11pc in Victoria to 92,000t nutrient. These falls offset rising sales in South Australia, WA and Tasmania, as national sales dropped by 3pc to 397,000t nutrient.
Potash
Total MOP sales, the primary potassium fertilizer product, fell by 7pc to 365,000t product.
WA, Victoria and Queensland consume the most potassium fertilizers in the country and all of these states saw falls. WA fell by 7pc to 96,000t nutrient, Victoria by 2pc to 48,000t nutrient and Queensland by 11pc to 42,000t nutrient. National potassium fertilizer sales fell by 7pc to 224,000t nutrient.
2020 season outlook
Fertilizers sales should rise this year after ample rainfall on the east coast. Ample rainfall is also forecast for WA that should support demand. Urea sales could exceed 2mn t this year, subject to rainfall.
Agricultural supply chains are classified as essential, so fertilizer deliveries should be unaffected by the Covid-19 restrictions and permitted across state borders.
Domestic application starts during the second quarter, but some fertilizer despatches were brought forward because of possible disruptions, resulting in tight supplies. Importers said the issue is now getting enough prompt shipments to resupply the domestic market.
Urea imports totalled 101,000t during January and February, down by 64pc from a year earlier, according to GTT data. The slower start reflects a heavy carryover of urea stocks from late season imports and differing shipment timings. Future data should show a rise, with numerous Mideast Gulf and Malaysian spot cargoes booked for shipment from March onwards.
MAP imports during January and February totalled 311,000t, up by 27pc amid rising shipments from China of 215,000t, which was a 69pc share of supplies. MOP imports totalled 105,000t, up by 6pc.
