FERTAO - Fertilizer Cost Build up studies and process maps in West Africa (9 countries)
Main goals
The objective of this consultancy to undertake a series of cost build-up studies and fertilizer process maps along four main corridors that connect with the main high-fertilizer consuming hubs/destinations in West Africa (e.g., cotton areas in Sahel), which will identify key bottlenecks and processes that can be optimized to reduce domestic costs and reduce farm gate prices
>> See the studies on the IFDC website
Specific objectives
- Understand the cost implication of the various components of the fertilizer value chain to the final fertilizer prices paid by the farmer
- Be able to compare costs to move product through different ports in a given region, and understand the variation in costs and processes
- Provide fertilizer stakeholders offline and online tools to estimate scenarios and cost of doing business through various corridors for various products (straight, compound, blends)
Results
R1. The study will analyze 4 main corridors
- Port of Dakar, serving Senegal, Mali, and Burkina Faso
- Port of Abidjan, serving Cote d’Ivoire, Mali, and Burkina Faso
- Port of Tema, serving Ghana and Burkina Faso
- Port of Lomé, serving Togo and Burkina Faso
R2. Cost build up analysis for each corridor - From FOB to port warehouses (bulk / bagged / containerized, including storage)
- From port warehouses to main distribution centers
- For imported feedstocks (e.g urea, SoA, DAP, TSP, MOP, kieserite …) and main compounds imported in the countries served by the corridors
- For blends produced in coastal countries before export to the hinterland
- Where applicable, include railway costs in addition to trucking costs
- Provide recommendations to optimize costs of procuring and distributing fertilizers
R3. Detailed process map for each corridor - Standard procedures to import, blend, and distribute fertilizers
- Description of ports, roads and railways, warehouse operations and capacity
- Review of existing delays and issues encountered by stakeholders at the various stages, and their impacts on their business operations (cost, time)
- Provide recommendations to optimize processes of procuring and distributing fertilizers
Activities
A1. Conduct a desk review to assess
- Incoterms used for importing fertilizers at the respective ports (e.g. CFR, CIF, FOB)
- International freight charges (from manufacturers port to respective country’s sea port)
- Country Port Tariff manual (by Port managers e.g. either government and/or private agents)
- Taxes and levies imposed on fertilizers
A2. Conduct field and remote interviews with - Sea and dry ports, shipping agencies, forwarders, transporters, railway operators
- Fertilizer producers, importers, blenders, distributors
- Fertilizer supplier services: bagging, warehouses, quality control labs
- Customs: ports, hinterland borders, joint border posts
- Regional and national infrastructure and trade facilitation programs
A3. Hold consultative and validation meetings with key stakeholders - one per corridor
- one regional (during the next West Africa Fertilizer Forum, April 2019)
Related documents
Structure of Logistics Costs and Fertilizer Import Procedures along 4 Corridors in West Africa
Port of Abidjan - Structure of Logistics Costs and Fertilizer Import Procedures along 4 Corridors in West Africa
Port of Dakar - Structure of Logistics Costs and Fertilizer Import Procedures along 4 Corridors in West Africa
Port of Lomé - Structure of Logistics Costs and Fertilizer Import Procedures along 4 Corridors in West Africa
Port of Tema - Structure of Logistics Costs and Fertilizer Import Procedures along 4 Corridors in West Africa
Related people
Pierre Ricau
Holder of a Master Degree in "Agricultural Development and Economic Policies" from the Institute of Development Studies (IEDES), Paris 1 Panthéon Sorbonne University and AgroParisTech. He brings his expertise in agricultural market analysis (especially cashew, sesame, shea, cocoa, hevea, corn, rice and onion), development of agro-food sectors, training engineering and consultancy on public agricultural/agro-industrial policies
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Benjamin Garnier
Agricultural Engineer, specialised in "quality of the environment and resources management", from the French National School of Agricultural Science and Engineering of Toulouse (INP ENSAT). He brings his expertise in feasibility studies for investment funds, agricultural markets studies and analysis of value chains
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Cédric Rabany
Holder of a Master of Science, "Agricultural Engineer and territories development" from the Institut Supérieur d’Agriculture (ISARA Lyon), he brings his expertise in agro-food/agricultural sectors' analysis and development, strengthening of supplychain actors (producers, private/public actors, agro-food industries...), socio-economic analysis of agricultural chains and his great knowledge of companies in these markets
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Matthieu Tiberghien
Holder of a Master's degree in Management from the Paris-Dauphine University and a Master in "Social Policies and Planning in developing Countries" from the London School of Economics, he brings his expertise in project building and project management in renewable energy, REDD+, technical engineering, economic and financial due diligence, business development, strategic partnerships, fundraising and human ressources management
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Soungari Sekongo
Engineer in Tropical Agronomy from the CIED, option "plant production", he brings his expertise in agricultural markets analysis, advising-supporting actors, vegetable production and supporting professional agricultural organizations (management, capacity building)
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Cheikh Ousmane Loum
Graduated from a Master 2 in Territorial Planning - Decentralization and Local Development from the Faculty of Geography of the University Cheikh Anta Diop in Dakar. He also holds an engineering degree (Master 1) in community development and training from the Higher School of Applied Economics in Dakar. He is an expert in agricultural market analysis and in training and supporting producer organizations
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