As sanctions on Russia disrupt the supply of fertilizer to the rest of the world, the President of Dangote Group, Aliko Dangote in a recent interview said he is already receiving demands for the supply of fertilizer from the just launched plant.
“People are begging us to sell,” Dangote told CNN in a recent interview..
The $2.5 billion fertilizer plant, which sits on 500 hectares (1,235 acres) of land, has an initial annual production capacity of 3 million metric tons of urea fertilizer, the company has said during the launch.
The opening of the Dangote Fertiliser Plant comes amid a supply crunch in crop fertilizers due to sanctions against Russia, which accounted for almost one-fifth of 2021 fertilizer exports, according to Trade Data Monitor and Bloomberg’s Green Markets.
Russia is also a top exporter in key fertilizer ingredients such as urea, ammonia, and potash, per trade outlet Argus Media.
The supply strain has sent fertilizer prices soaring, with the Bloomberg Green Markets North America Fertilizer Price Index surging to record highs. This, in turn, is expected to feed into already soaring food prices, Business Insider reports.
“We are lucky to have this plant,” Dangote told CNN. “It is coming at the right time with the Ukraine-Russia conflict as both Ukraine and Russia control substantial amounts of agricultural inputs.”
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