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Mozambique: Manufacturing of granulated compound fertilisers for the Southern African markets

General information
Project location: Beira port, Mozambique
Consortium: Sainath International Pvt, Agro Industries Lda , Export Trading Malawi Ltd
Project Budget: € 1,266,154
External financing: PSI
Project period: January 1st 2010 till December 31st 2011, extended till May 31st 2013

Sainath International from India, its Mozambican partner Agro Industries Lda and its Malawian partner Export Trading Malawi are involved in the (international) trade and processing of agricultural commodities. Increased use of fertilizers is the key to enhanced productivity in African agriculture.  By developing a granulated fertilizer production and supply business, the Indian-Mozambican-Malawian Joint Venture between the three companies fill an important need for quality and affordable fertilizers in the rural areas. The location of the fertilizer granulation plant at Beira port is of strategic advantage for both imports of raw materials and the onward transportation by sea, road and rail of bags of finished product to the different agricultural production regions in Mozambique and Malawi.

With a granulation plant the cost benefits of blending over imported compounds are the same, but the quality of the fertilizer is markedly better. With granulation the main imported ingredients and the domestically manufactured base material (‘filling ingredient’) are dissolved in homogeneous slurry and then granulated so that each granule contains all nutrients as per the required specification. As such the granulated compound fertilizers yield better agronomic efficiency than blended fertilizers and are cheaper than imported fertilizers.

Sales and distribution of the fertilisers takes place through the networks of Agro Industries Lda and Export Trading in Mozambique, resp. Malawi.  Promotional activities, field demonstrations and fertilizer trials will be conducted to advice smallholder farmers on the soil fertility management.

The project partners initially cater for the Mozambican and Malawian markets, but in due time may also start supplying some of the other countries in the region.

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