Exports rise due to global demand on fertilizers

industry Exports  Potash Company
A general night view of the Arab Potash Company. (Photo: Facebook)
AMMAN — Exports to Arab and foreign countries increased between January and July this year because of rehabilitated economic activity following lockdowns under the COVID-19 pandemic which brought life to a virtual standstill, economists contended.اضافة اعلان

The revitalized activity was coupled with an increased demand for Jordanian fertilizers and potash in the wake of Russia’s war on Ukraine, which resulted in significant global supply disruptions, the economists argued.

“The circumstances of the pandemic and the Russian-Ukrainian war led to increasing demand for Jordanian fertilizers, potash and phosphate, which drove our exports up,” Economist Wajdi Al-Makhamreh told Jordan News.

Another economist, Mazen Irsheid, said the growth in exports “was expected due to the return of normal economic activity since last September.”

Globe News Wire, a newswire distribution network, said the fertilizer industry has been on the rise because of the “growing popularity and demand for fertilizers” in the agriculture sector along with the “increasing global population leading to surging demand for food”.

It said the global fertilizer market is projected to witness a further “robust growth” this year, owing to the rising demand for food grain production globally.

The World Bank said fertilizer prices have risen nearly 30 percent since the beginning of 2022. This followed last year’s 80 percent surge. 

“Soaring prices are driven by a confluence of factors, including surging input costs, supply disruptions caused by sanctions (on Belarus and Russia), and export restrictions (China),” a Bank blog said.

“Urea prices have surpassed their 2008 peaks, while phosphates and potash prices are inching closer to 2008 levels,” it said. “Concerns around fertilizer affordability and availability have been amplified by the war in Ukraine.”

Makhamreh said that the opening of markets with Iraq and Palestine led to an increase in exports, noting that the Ukrainian crisis had helped to grow Jordanian exports, especially clothing, mining, and medicine.

The Amman Chamber of Commerce (ACC) said certificates of origin it issued between January and July this year for exporting goods to Arab and foreign countries were valued at JD506 million, compared with JD392 million for the corresponding period in 2021.

ACC data, however, showed that the number of certificates of origin issued in the past seven months declined to 18,931, down from 20,312 recorded in the same period last year.

ACC said exports targeted several countries, most notably Saudi Arabia with 4,645 certificates of origin, the UAE with 2,479, Iraq 778, Egypt 518, and India with 99.

But in terms of the value of exports, Iraq came first with JD121 million worth of imports of Jordanian products, followed by Egypt with JD73 million, Saudi Arabia JD57 million, the UAE JD45 million, and India JD27 million.

Re-exported foreign products through Jordan amounted to JD215 million, according to the ACC data.

ACC Vice President Nabil Al-Khatib told Jordan News that exports between January and May this year reached JD3.075 billion, or 40 percent more than the corresponding period in 2021, which was estimated at JD2.14 billion.

Al-Khatib explained that the most prominent exports during the five-month period included livestock, agricultural produce, phosphates, fertilizers, and potash.

He concurred with the two economists, Makhamreh and Irsheid, that the global demand for Jordanian phosphate and fertilizer, and a growing demand for Jordanian livestock in the wake of the Russian-Ukrainian War “are all reasons for this growth in exports.”

Irsheid said that the seven-month growth was partly due to improved relations with neighboring Iraq, and the recent exchange of visits between Jordanian and Iraqi delegations seeking closer economic cooperation and increased trade exchange.

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