Phosphates and derivatives double in sales for February 2022, compared to last year

Phosphate sales and its derivatives have doubled this February 2022 compared to the same month last year, reaching MAD 14.21 billion compared to MAD 7.26 billion in 2021.

In its monthly note on the state of foreign exchanges, the National Office of Changes explained that this significant growth in exports “follows the increase in demand and sales of natural and chemical fertilizers, which rose by MAD 4.48 billion, and the tripling of global prices for such goods.”

Prices for fertilizers have almost tripled this year, reaching MAD 7,214 per ton at the end of February 2022, against MAD 2,996 at the end of February 2021, says the office.

The increase was possible despite the 16.4% decline in the quantities exported compared to last year.

Meanwhile, exports of agricultural goods and food have reached MAD 15.44 billion at the end of this February, compared to MAD 13.57 billion during the same period of 2021.

The sectorial increase is set at 13.8%, said the Office, explaining this development by the increase in sales of the food industry, which climbed up to 36.2%, while the sales remain virtually stable at MAD 8.13 billion.

The Office of Foreign Exchange also indicates that at the end of February 2022, exports of goods reached MAD 62.47 billion against MAD 48.92 billion a year earlier, noting a 27.7% increase, which concerns all sectors, mainly phosphates and its derivatives, agriculture, agri-food sector,textiles, and leather.

Last week, the Moroccan Cherifian Office for Phosphates (OCP) announced it will pay a historical MAD 8.1 billion in dividends to the government, after a record-breaking year.

The OCP declared a record rate turnover in 2021, which is expected to reach MAD 84.3 billion, compared to MAD 56.2 billion at the end of December 2020, making up a 50% added value increase.

The group recorded earnings before interest, taxes, depreciation, and amortization rate (EBITDA) of MAD 36.3 billion against MAD 18.7 billion at the end of December 2020.

If international prices for fertilizers, phosphates, and derivatives retain their upward trend, this could be an even better achievement for the Moroccan economy and will be able to finance the OCP’s production expansion and growth, securing considerable, game-changing revenues for the state.