New fertiliser firm enters Zambian market

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New fertiliser firm enters Zambian market

High cost of fertiliser, which ranges from K700 to K750 per 50 kilogramme bag in most cases, is a huge hindrance to increasing production, especially for small-scale farmers. Traditionally, Zambian farmers have received fertiliser supplies (both urea and D-compound) from Nitrogen Chemicals of Zambia (NCZ), a state-owned entity established in September 1970 for the sole purpose of fertiliser production to support the agriculture sector.

Nonetheless, over the years the firm, which is under Government’s investment wing, Industrial Development Corporation (IDC), has struggled to operate to full capacity due to a range of reasons, namely insufficient funding and obsolete machinery among others.

Erratic production

The erratic production of fertilisers by NCZ has led to the importation of the commodity through the involvement of private entities.  This has resulted in the high cost of the commodity on the market, considering factors such as transportation, customs costs and time delivery dynamics. Agriculture remains the main economic activity for many citizens in rural Zambia, accounting for a larger percentage to the country’s food basket.  As such, it became a campaign issue in the run-up to the August 12 general election.

United Party for National Development (UPND) promised to reduce the price of a 50kg bag of fertiliser, from the obtaining prices of between K700 and K750, down to K250. UPND presidential candidate then, now Republican President, Hakainde Hichilema, said the lowering of the fertiliser will lead to more production and cheaper foods for household and national food security.