TN/AG/SCC/W/44  
WT/CFMC/70  
 
16 December 2022 
(22-9399) Page: 1/6 
Sub-Committee on Cotton    
 
 
ROUNDTABLE - THE CURRENT MARKET SITUATION FOR FERTILIZERS  
AND VIABLE ALTERNATIVES FOR COTTON PRODUCTION  
10 NOVEMBER 2022 , 15:00-18:00 (ROOM F/INTERPREFY)  
Report1 
1.  The Chairperson , WTO Deputy Director -General Mr. Jean -Marie Paugam,  welcomed all 
participants to the roundtable whose  aim was to examine  the market conditions for fertilizers and to 
better understand impact s on cotton production, particularly in developing countries.  
2.  He started by noting that fertilizers  prices  had reache d record -high levels globally in the previous 
months , attributed to export restrictions and higher inputs costs, such as natural gas, which is 
essential for produci ng fertilizers . 
3.  He recalled t he importance of fertilizers to food security  as underscored in the Ministerial 
Declaration on the Emergency Response to Food Insecurity, adopted during the 12th Ministerial 
Conference . He remarked that c otton ha d an important role to play in the context of food security, 
as cotton is a critical cash cro p for many smallhold er farmers . Thus, increased earnings from cotton 
lead to an increase in farmers' incomes, thereby improv ing their access to safe, sufficient, and 
nutritious food for themselves and their households.  
4.  He noted  that the roundtable w ould also examine the role of organic fertilization  as part of the 
collective effort to mitigate the noticeable effects of climate change and encourage more sustainable 
practices in cotton production.  
5.  Lastly, he announced that t he roundtable w ould be moderated by  Ms. Marième  Fall, 
Officer -in-Charge of the WTO Agriculture and Commodities Division,  who w ould introduce  the 
speakers and the topics to be covered in the discussions.  
6.  Ms. Fall thank ed the speakers who had kindly accepted the invitation to share their experience s 
and findings on th e topic. She stressed the timeliness of discussing the situation of fertilizer s and 
cotton production.  She welcome d participants joining the discussions both in -person and virtually 
via Interp refy as part of the WTO November 2 022 Cotton Days meetings.  
7.  She then invited  Mr. Fousseini Traoré from the International Food Policy Research 
Institute  (IFPRI)  to set the scene and present an overview of the latest developments o n fertilizer 
markets by examining  global  availability and aff ordability.  
8.  Mr. Fousseini Traoré  began by  showing the evolution of international prices of grains, fertilizers,  
and cotton , underscoring the effects on prices caused by  specific export restrictions and the conflict 
in the Black Sea region. He noted that d emand  for fertilizers had increased by 6.3% in 2020 -21, 
mainly  due to the rebound of crop prices in 2021 . On the supply side of fertilizers, he pointed to: 
1) the increase of production costs (e.g., natural gas, and coal in China) ; 2) export restrictions  by 
major producers ; 3) effects from economic sanctions ; and 4)  disruptions in trading routes  and 
logistics . According to him, t hese were aggravated by the fact that fertilizer suppliers are highly 
concentrate d. He reported , for instance,  that for nitrogen the Russia n Federation , China, and Qatar  
 
1 This document has been prepared under the Secretariat's own responsibility and is without prejudice 
to the positions of Members or to their rights and obligations under the WTO.  TN/AG/SCC/W/44 • WT/CFMC/70  
 
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  jointly account for 33% of exports; for phosphates, China, Morocco, and the Russia n Federation 
correspond ed to 57% of total exports; while for potash, Canada, the Russia n Federation , and Belarus  
export ed 80% of global trade.  
9.  Coupled with the high concentration of international suppliers , he noted that the prices of those 
inputs have reached unprecedent peaks since mid -2021.  
10.  He then examined  the dependency on world markets for fertilizers  with a focus on West Africa, 
including potassium -based  fertilizers from the Russian Federation and Be larus, and nitrogen -based 
fertilizers from external suppliers.  He added that fertilizers are mainly targeted to the most profitable 
crops, as is the case in  Nigeria, Ghana,  and Mali.  
11.  He concluded  by presenting the effects of subsidies bestowed to farmers in the form of inputs , 
as fertilizers . He presented the cases  of Benin, Burkina Faso, Côte d'Ivoire, and Mali . Hence, the 
higher fertilizer prices result ed in higher government public account expenses  to ensure  social , 
economic,  and development goa ls, especially in rural areas , are met . 
12.  Ms. Fall invited Dr. Keshav Kranthi , Chief Scientist of the International Cotton Advisory 
Committee  (ICAC) , to present the findings of a recent study on good soil practices for higher cotton 
yields.  
13.  Dr. Keshav Kranth i started by referring to his presentation delivered at the 38th Round of the 
Director -General's Consultative Framework Mechanism on Cotton (DGCFMC)  on improving soil 
organic carbon (SOC) and the benefits that stem from biochar (also known as terra preta ). 
14.  Showing empirical evidence of the impact of SOC in higher cotton yield in key states in the 
United States, he noted the role of c rop rotation, the impact of manure on yields, the effects of water 
capacity to yields, and the negative correlation between  low organic carbon soil and the need of 
fertilizers to ensure higher yields.  
15.  In this context, he mention ed the role of regenerating farming practices  by: minimiz ing 
agrochemicals, minimiz ing soil disturbance, maximizing crop diversity, keeping the soil covered, 
maintain ing living roof year -long, and integrating livestock  to cotton production  farms . He also noted 
the positive role of nano -botanical pest icides  with the assistance of green manure, biochar, 
composting bed s, and local biofertilizer.  
16.  He concluded by presenting "The Cotton Expert" mobile application , which ha s been developed 
by ICAC with the financial assistance of the German Development Agency (GIZ), the European Union 
and the International Trade Centre (ITC).  
17.  Ms. Fall then turned to Mr. Josef  Schmidhuber  from the Food and Agriculture Organization of 
the United Nations (FAO) to present the FAO Fertilizers Tracking Tool  and how  Members c ould use 
the on-line tool to understand market trends, identify suppliers, find out prices, and bett er inform 
their policy makers.  
18.  Mr. Josef Schmidhuber  started by noting  that m any countries do  not track monthly imports  and 
exports  of fertilizers , which could negatively impact their understanding and the design of policy 
strategies. According to him, m ost countries do  not know how much they import in terms of nutrients 
(Nitrogen , Phosphate , Potash) , hence, the tracking tool serves a "match-making " purpose to identify 
supply  sources , as well as for countries with exportable surpluses , and e xporters to look for countries  
with unmet import needs . The tool was also important to  inform in cases of emergency needs 
assessments . 
19.  He showed that global ferti lizer imports from the Russian Federation were stabl e in recent 
periods , though the European Union imports of fertilizers from the Russian Federation had 
experience d a sharp reduction. He also noted the r apid global decline in fertilizer imports (mainly 
potash) from Belaru s. 
20.  He concluded by showing country specific fertilizer needs in Africa and referred to a n index 
specifically developed  to understand the demand  of those countries  in-depth . TN/AG/SCC/W/44 • WT/CFMC/70  
 
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  21.   Ms. Fall move d into specific regional projects involving fertilizers with a focus on West Africa. 
The first presentation was delivered by the Feed the Future Enhancing Growth through Regional 
Agricultural Inpu t Systems - Engrais Project at the International Fertilizer Development 
Center  (IFDC)  by Mr. Patrice Annequin.  
22.  Mr. Patrice Annequin  reported on the fast -growing fertilizer market trend experienced in West 
Africa , where c onsumption levels have reach ed between 3.5 to 4 million ton nes since 2017 , 
corresponding to a 100% increase when compared  to the 2010 levels . However, due to the current 
market scenario, a deficit of  1.2-1.5 million ton nes in 2022  was noted . He also mentioned Nigeria 's 
production capacity  of 6.5 mt of urea p er annum . 
23.  Mr. Annequin presented the main routes  used for fertilizers in the region , blending  capacity , 
stockage , and distribution in West Africa . He then  looked in to the cotton acreage planned versus 
area actually sown by 31 July 2022 . Fertilizer consumption in eight large cotton producers in 
West Africa recorded an average of 722 metric ton nes in the last five years, noting that f ertilizer 
prices remain ed very high and volatile . He also noted that ECOWAS countries were largely dependent 
on the Russian Federation and Belarus for their supplies (between 20% to 50%) . 
24.  He mentioned that p rocurement  and distribution models for fertilizers tend to vary from country 
to country, and presented the case s of Benin , Senegal, Mali , with a specific mention of the challenges 
encountered in Mali.  
25.  As concluding remarks, he suggested: improvement s to the procurement processes , better 
trade finance  tools with risk sharing for importers  and blenders , as well as better p lanning and 
forecasting . On affordability: smart and targeted subsidy programmes, exit strategy,  and adjusted 
fertilizer pricing; and for nutrient use efficiency: smart fertilizers, integrated soil fertility 
management, good agricultural practices, q uality control , better s oil maps, research and 
development and ex tension , as well as further t rainings  to farmers.  
26.  Ms. Fall then invite d Mr. Michael Sudarkasa and Ms. Nana -Aisha Mohammed from the African 
Fertilizer and Agribusiness Partnership (AFAP) to present on their efforts to boost access to fertilizers 
in the African continent, including  business contact s, logistics, financial and policy aspects.  
27.  Mr. Michael Sudarkasa and Ms. Nana -Aisha Mohammed  presented  the AFAP  as a service 
provider to the private and public sectors on sustainable development projects and policies focused 
on market -driven business solu tions in fertilizer and agribusiness for better agricultur al productivity.  
They also stressed that AFAP also serve d by building capacity and linking African agro-dealers and  
smallholder farmers to global fertilizer and food companies, ensuring balanced crop nutrition 
products, technology, financing and equipment in Africa.  
28.  The presenters further added that  AFAP works in collaboration with the  fertilizer industry, 
agribusiness  marketing, fi nance  institutions , as well as with  IT and investment experts  to develop  
market development services, facilitat e financial services, increase data collection , and implement 
digitization and fertilizer policy  services.  
29.  They then addressed the challenges fac ed by cotton producers in West Africa: rudimentary 
agronomic practices ; price volatility locally and on the world market ; access to affordable credit ; 
quality, standards and harmonization for seeds, fertilizer and crop protection; access to timely inputs 
especially in subsidy -based markets; and handling climate change, as well as environmental impact s 
and pest control.  
30.  According to AFAP, fe rtilizer prices on-the-ground have increased by about 200% since 2020.  
This was due inter alia to structural challenges  such as opaque and inefficient government 
procurement/tendering processes ; delayed government payments and defaults ; infrastructure 
bottlenecks ; working  capital financing constraints ; issues of small/fragmented markets ; and a range 
of policy challenges (e.g. , sanctions, tax regimes) . 
31.  The presenters then  examin ed the average fertilizer consumption per country in East and 
West Africa and  showed the unmet demand for fertilizers  in several countries considering market 
size and existing inventories.  The presenters stressed the issue of timing in the procurement process 
for fertilizers by several countries, which  could  jeopardize access by farmers at the right planting TN/AG/SCC/W/44 • WT/CFMC/70  
 
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  time. On the way forward , the presenters suggested  strengthening distribution channels, ensur ing 
access to finance, implement ing proper trade facilitation measures, and adopting policy support to 
enable public -private collaboration . They also recalled the importance of  regional t rade regulation, 
implementation of subsidies practices, and harmonizing financing policies on fertilizers.  
32.  Finally , Ms. Fall called on Ms.  Eva Goldmann from the Research Institute of Organic 
Agriculture  (FiBL) to present  their research on the advantages and challenges of organic fertil ization 
given the importance of  sustainable alternatives.  
33.  Ms. Eva Goldmann  shared the experience of FiBL of  over 20 years on cotton projects and organic 
fertilization , which includes long -term trials, participatory research, training on organic practices, 
institutional capacity building, support for conversion to organic, breed ing organic cotton varieties, 
undertaking economic assessments, and counselling on systemic support for rotation of c rops. 
34.  According to the presenter, organic fertilization had several benefits,  such as closing soil 
nutrient cycles, cost efficiency, local availab ility of most of the inputs , and the efforts to build -up soil 
fertility. Organic fertilization includes compos t, mineral (ashes, bone meal, rock phosphate), 
intercropping, farmyard  manure, green manure or cover crops , and crop rotation . In terms of 
achieved yields with organic fertilization, field research demonstrate d that in the long -run yields are 
similar between cotton produced organically versus conventional cultivation.  
35.  She also mentioned that S OC with organic fertilization showed improved results, and empirical 
water absorbency w as clearly better with organic inp uts when compared to the use of  synthetic 
fertilizers.  
36.  To conclude , she stressed the importance of m anaging the type of  fertilization, timing, and 
qualit y of inputs. If properly done,  she stated that  organic fertilization c ould increase SOC and 
influence  soil fertility parameters , in addition to offering the  benefits of being locally availab le and 
helpful in the closing of  nutrient cycles . 
37.  Ms. Fall thanked all speakers for  the thorough presentations and opened the floor for questions 
and comments from participants  attending both in-person and virtually . 
38.  The representative of the European Union  stated  that the Russia n Federation 's invasion of 
Ukraine ha d worsened an already challenging situation for the fertilis er market, following the effects 
from the  COVID -19 pandemic . Largely because  production of nitrogen fertilisers depends on natural 
gas. He added that the shortage of natural  gas ha d negative repercussions on the global fertiliser 
market, impacting farmers and affecting food security across the globe . He reported that t he 
EU Commission was taking measures to reduce the pressure on farmers inside and outside the EU. 
He complemented that t he sustainable way forward was to focus on efficien t alternatives , such as 
expand ing production of green ammonia , which c ould be produced with renewable energy. Th is 
would also allow less depend ency on fossil fuels and create a more resilient food system . 
39.  The EU representative also noted th e importance  for cotton producers in low -income countries  
to optimize fertilizer use while securing yields. He reported that t he European Commission, together 
with European Union member states, w ould focus on extension and advisory services to farmers. 
Besides that, t he European Commission was also plan ning to contribute to improving global market 
transparency in fertilizers and initiate discussions on the avoidance of export restrictions on fertilizer 
trade. Lastly , he add ed that the European Commission w ould step up its support to address balance 
of payments needs of developing countries, and that partnership with International Financial 
Institutions  would be sought  in that regard . 
40.  The representative of the United States  expressed his appreciation to all the presenters on this  
timely and pressing topic of fertilizers and the volatility across the globe . He noted the impact 
especially on small and vulnerable producers in developing countries and in LDCs  who were in a 
difficult situation. He reported that in September  2022 the U nited States had  launched the Global 
Fertilizer Challenge  for innovative research on the usage of fertilizer s and training  to adopt efficient 
nutrient management and alternative fertilizers. The initiative was created  in collaboration with the 
Agriculture Innovation Mission for Climate  counting several members in the coalition. He then e choed 
the EU 's comments regarding the Russia n invasion in  Ukraine and the self-imposed export control 
preventing Russian and Ukrainian products to access the global market . TN/AG/SCC/W/44 • WT/CFMC/70  
 
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  41.  He noted that the Russian Federation had adopted an export quota on fertilizers and increased 
export taxes on a number of other products , creating food insecurity and volatility in international 
markets. He further noted that the U nited States and the EU w ere not blocking the 
Russian  Federation from exporting  grains or fertilizers.  He then asked presenters whether  it was a 
good time for investment s in fertilizer capacity development  in Africa  and whether underdeveloped 
resources  could be used to produce more fertilizers . 
42.  The representative of Chad  thanked  the speakers  for the rich and timely presentations which 
would be shared with capital -based officials. On the first presentation from IFPRI , he asked , based 
on the prices  for fertilizers as seen in the  2008 and 2011  crises , now exacerbated with the Black Sea 
conflict , what the projections were for the future . On logistics, he noted the transport costs  incurred , 
especially for landlocked countries such as Chad, and asked whether the high prices of freight  due 
to the lack of ship s and containers going to Africa  could be solved with alternative and more efficient  
solutions . On sub sidies  and minimum prices for fertilizers,  he asked  whether establishing a minimum 
price for fertilizer could create a buff er to counter price increases  and what would be the best  
long-term strategy. On the presentation from ICAC on rejuvenating soil practices,  he wondered 
whether th ose were enough to tackle current issues and to respond to the increasing global 
demography and demand.  On the artificial intelligence  tools presented , he praised the mobile 
equipment for farmers to interact with producers in other cotton producing countries to identify pests 
and improve their good agricultural practices, especially co nsidering the illiteracy of many farmers . 
Lastly, on the presentation from AFAP he asked whether they plan ned on  expand ing their work to 
Central Africa  and whether the impact of fiscal regimes on prices had been analys ed. He also 
appreciated clarification on setting up policies to ensure the good quality of the fertilizers offered to 
farmers , as the technology to assess  (proper laboratories)  is lacking  in most African countries . 
43.  The representative of UNCTAD  recalled that they had recently concluded projects  in Malawi and 
Togo, as well as in five other countries  before, where they evaluat ed the entire  cotton value chain. 
He noted that t he cotton value chain was heterogenous and var ied according to countries but  
identified the common need for farmers  to obtain inputs  that are  affordab le, at the right moment,  
and of a good quality. According to their experience, a survey with farmers in Togo showed that 
fertilizer s do not arrive at  the right time of planting  and sometimes with low quality . 
44.  The represen tative from IFDC replied that mineral  and organic  fertilizers are complementary to 
each other. He then mentioned that Senegal had recently accepted to host in June 2023 an African 
summit on fertilizers and soil health  which would address  sustainab ility concerns and rejuvenating 
soil practices . He noted that t he production capacity potential of fertilizers in Africa was real as there 
are reserve s of several  fertilizers inputs, such as gas, phosphate, and potash . He reported that t he 
cost for a fertilizer  plant was between USD 1 and 2 billion and the time necessary to start production 
was between 5 to 10 years. He noted that g enerally the installed capacity was higher than the 
demand and those countries  would need to  export, as was the case in Nigeria. He mentioned that 
Congo, Eritrea, and Burkina Faso ha d the potential to establish those factories , as well as Angola, 
Mozambique, Tanzania,  and Ghana. He recalled that West Africa n producers are price takers on 
fertilizers . He also noted the need to  expedite  both transit and customs  clearance once the fertilizer 
arrive s at the port  to avoid paying extra costs which would eventually be passed onto farmers. He 
also mentioned that there are  needs  for more stocking facilities in ports and better road network s, 
which go beyond the fertilizer discussion . On tax and tariff  regimes , he recalled that in all West 
Africa , fertilizer s were  duty free. On  quality, he noted that indeed a bad quality fertilizer had 
catastrophic results for producers and to the environment. On the regulation at the regional level , 
he noted that  ECOWAS/CEDEAO  were in the course  of making an assessment to improve testing, 
including through laborator ies and respect ing quality control i n ports  and in fertilizer blending 
installations , though  fraud occurred  by adding rocks and other elements to fertilizers.  
45.  The representative of IFPRI  corroborate d the points mentioned by IFDC on the transport 
challenges , especially for landlocked countrie s. He then briefly recall ed the changes in agricultural 
production in West Africa, from State -controlled companies to more liberalized  production . He noted, 
however , that credit and insurance were still two big issues, and a minimum price for fertilizers and 
cotton would still give more stability to farmers to know the production  and selling margins and to 
access to credit lines.  
46.  The representative of ICAC  answer ed the question by Chad on whether the solutions of biochar 
and SOC were adequa te and reiterated that he believe d that soil health is critical,  and those methods 
ensure d that soils are kept healthy  with the necessary nutrients . He added that i f organic soil was TN/AG/SCC/W/44 • WT/CFMC/70  
 
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  bad, the n agricultural production suffer ed. The techniques  described we re modern , as the U nited 
States for instance use rejuvenating practices , such as conservation tillage , and i n the past 30 years 
it had not increased fertilizer use for cotton , but production ha d been increasing  steadily . He noted 
that b iochar was an ancient practice but modern ized to convert soil into terra preta , thus he believed 
that the use of this sustainable practice would  be able to meet the demands for more production . 
47.  The representative s of AFAP  replied  to the U nited States that producing fert ilizers in Africa was 
a long -term proposition, but at the same time  a legitimate one, as  those  countries  who have natural 
resources believe d in exploring them to avoid future external shocks and impacts on agricultural 
producers.  On Chad, they mentioned they we re interested in Central Africa and would be keen to 
have new projects in the region. On the tax issues, they responded that it would be good to review 
the tax regimes to examine whether there are any extra costs being carrie d over to the farmer s. 
They have conducted several studies on the topic and most countries are duty free  as stated by 
IFDC. But there are opportunities to investigate  other aspects to better understand the situation. On 
the quality issue, they referred to the various ways to check the quality, and cooperation  with the 
regulatory authority in Chad would be needed to verify their capacity was running well and to 
propose improvements from the port to farm level.  On the value chain, they agreed that better 
understanding each level and how they impact the final output  was necessary . 
48.  Ms. Fall thanked presenters for the wealth of information and experiences shared . She recalled 
that t he WTO Secretariat would continue to support Members and cotton producers in their  efforts 
to understand market changes and evolution s, to enable appropriate and timely action.  She also 
acknowledge d that t hese types of roundtables  enable d better responses in cotton -producing 
countries, particularly in LDCs , with clear benefits for rural development, poverty alleviation, food 
security, and agricultural sustainable practices . 
49.  Ms. Fall reiterated that all the presentations  would be made available on the WTO website as 
part of  the programme  of the roundtable. She thanked all participants for their engagement and 
interpreters for their usual excellent support . 
 
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