Imported fertilizers to fuel food yield

Industry experts look to Chinese products to create competition, cut prices in Africa

Imports of Chinese agrochemicals and fertilizers will play a critical role in Africa's mission to enhance food production, according to delegates at a trade exhibition in Kenya.

The price of most pesticides and fertilizers currently put them out of reach of small farms, a description that can be applied to about 80 percent of farms in Africa, according to the Food and Agriculture Organization of the United Nations.

Yet agricultural industry insiders at the second China (Africa) Agrochemical Summit and Exhibition in Nairobi this month say an increase in imports of cheaper agrochemicals from China can create competition and push prices down.

"When the price is lower, more farmers will be able to access pesticides, which will lead to greater productivity," says Joseph Walukau, director of international linkages and programs at Egerton University's agricultural department.

Will Bett, the cabinet secretary at Kenya's Ministry of Agriculture, Livestock and Fisheries, says the wide gap between potential and actual yields mainly comes down to pests and diseases, which thrive in the region's warm conditions. This makes effective pest management vital to boosting productivity.

He says the trade expo, held on Sept 20 and 21 and co-organized by the China Council for the Promotion of International Trade, provided local import companies with a platform to meet Chinese agrochemical suppliers.

"The summit was a forum for stakeholders in the industry to share ideas on how to improve productivity while ensuring safety for the environment and biodiversity," he says.

Pesticide use brings numerous challenges, including pest and pathogen resistance, Bett says. "These circumstances call for development of environmentally friendly products with low toxicity and residue, coupled with effective regulation of their use."

Regulators should provide comprehensive analytical support and ensure the quality of pest control products through market surveillance and laboratory testing, he says, also calling on manufacturers, farmers groups, researchers, universities and exporters to develop sustainable pest and disease management strategies.

China has accumulated great experience in agriculture development, including in agrochemicals and crop protection, according to Guo Ce, counselor for economic and commercial affairs at the Chinese embassy in Nairobi.

Despite having only 10 percent of the world's arable land, the nation produces enough food for 20 percent of the global population.

"I hope commercial exchanges between China and Kenya will become more frequent and fruitful," he adds. "I'm confident that with joint efforts we'll achieve a win-win outcome and embrace a brighter future."

Dozens of Chinese businesspeople who participated in the exhibition expressed their confidence in the Kenyan market and said they would fast-track negotiations with local partners to facilitate their entry.

Frank Yang, deputy general manager of a Chinese manufacturer of agrochemicals, is upbeat that venturing into the Kenyan market promises huge rewards.

"Kenya is a very strategic market for us and we are in discussions with several local partners to facilitate our entry here," says Yang, adding that his company had already established a strong presence in Nigeria, Ghana and South Africa.

Yang says his conversations with Kenyan officials and business executives have shone a spotlight on the bright prospects for agrochemical industry in the country as Kenya is fast-tracking the mechanization of agriculture.

"The use of pesticides and chemical fertilizers in Kenya has grown at an annual average of 10 percent.Most farmers are convinced that managing pests and diseases alongside adding nutrients to the soil is key to higher productivity," Yang says.

He says that as Kenya and other African countries adopt highly mechanized farming systems, demand for fertilizers and pesticides will increase.

"So far, consumption of agrochemicals in Kenya may not be at par with global standards, but it will increase tremendously in the near future," Yang adds.

James Zeng, the managing director of a Chinese manufacturer of farming products, says the Kenyan agrochemicals industry remained attractive to Chinese investors despite several regulatory hurdles.

"We are already doing business in West Africa and Egypt. And Kenya presents new opportunities to manufacturers of agrochemicals," Zeng says.

His company is seeking a local partner in Kenya to facilitate exports of compounds used in the manufacture of farm inputs.

These are signs that more Chinese firms are willing to be part of Kenya's agricultural development. And Kenya's stable food production to meet local and regional demand has led to an attractive market for products used in farming for Chinese businesses.

Peter Li from another Chinese manufacturer of fertilizers says his company intended to venture into the Kenyan market where he expected good returns.

His company produces and exports water soluble fertilizer that has gained traction across Africa where governments are promoting soil regeneration using organic matter.

Li says water soluble fertilizers promise higher yields without compromising the health of soils, water sources and other vital ecosystems.

"The use of water soluble fertilizers by Kenyan farmers is a brilliant choice as it will reverse salinity in soils and boost crop yield," Li says.

Chinese exhibitors at the Nairobi expo were confident about growing their presence in Africa.

Eric Zhang, sales manager in East Africa for New China Chemicals Co Ltd, says his company has exported agrochemicals and fertilizer to Uganda, Rwanda, Tanzania and Ethiopia for the past two years. It entered the Kenyan market last year.

The uptake has been good, he says, adding that the company expects to record a $500 million a year in turnover by the end of 2017 in the East African market.

Francis Owino, who runs Reef Ltd, an export company based in Nairobi, says he is planning to expand his business from importing machinery to fertilizers for organic farms.

"There's a lot of potential in this market," he says, adding that he is confident of getting quality and cheaper fertilizers thanks to Kenya's strong relations with China.

As of 2014, the Kenya Pest Control Products Board had cleared 1,272 types of pesticides for sale on the domestic market, including 301 produced by Chinese companies.

Xinhua contributed to this story.

edithmutethya@chinadaily.com.cn

(China Daily Africa Weekly 09/23/2016 page28)