Ca Mau fertilizer company reduces exports, focuses on domestic market

A forest released at the end of 2001 had warned that the fertilizer market in 2021 continues facing challenges since inventories are high and natural disasters such as drought and saltwater intrusion in the Mekong River Delta, drought in the Southeast and Central Highlands, floods in the Central and Northern regions are likely to recur. The Covid-19 epidemic will continue to persist and the trend of changing crops takes place in the Mekong Delta.

This has caused significant impacts on plans of development, production, and sales of fertilizer companies as the risk of a heavy goods backlog is likely to occur as it did in the first quarter of 2020.

To cope with the situation, right from the end of 2020, some domestic fertilizer manufacturers had signed export contracts in the first quarter of 2021 to reduce inventories and balance domestic supply and demand.

However, in the middle of the first quarter of 2021, PVCFC concerned that domestic demand for fertilizers was higher than the same period last year, it proactively had stopped/reduced the plan for exports and expansion in the world market to make maximum efforts to focus on domestic consumption and markets with traditional distribution systems. Export markets that it had established a partnership with including India, Sri Lanka, Philippines, Bangladesh, and Myanmar will temporarily be stopped.

By the end of the first five months of 2021, the Ca Mau Fertilizer Plant has operated safely and stably with an average capacity of 105%, reaching an output of more than 380,000 tons of urea to supply to the market. Besides, to meet the diverse needs of farmers, the company has imported and supplied to the market nearly 70,000 tons of other products such as NPK and Potassium.

The Mekong Delta market is identified as the company's No. 1 target, so it prioritizes distributing regional products to meet the seasonal needs of farmers. The company regards it as both its goal and responsibility.

In the first 5 months of 2021, the company achieved a total consumption of fertilizers in the region reaching 260 thousand tons, an increase of 14% compared to the scheduled plan and equivalent to the same period in 2020. Of which, urea and its original products produced by the company accounted for 210,000 tons, 30% higher than the plan and 13% higher than the same period in 2020.

As an enterprise with a strategy to reach out to the region and the world, PVCFC has also developed scenarios to gradually seek and expand the market to many other countries at the same time ensure the supply of fertilizers for the domestic market.

However, during implementing its plan, the company always takes into account flexible solutions with priority for the domestic market and accompanying consumers who are Vietnamese farmers.

PVCFC leaders said that in the coming time, the company will continue to operate at maximum capacity and stop export activities to focus on the domestic market, ensuring adequate and timely supply of quality products to farmers helping lower the fertilizer prices.