Cost build up webinar FERTILIZER COST BUILD-UP
Description: Cost build up webinar FERTILIZER COST BUILD-UP Main Findings of the Fertilizer Cost build up studies and process maps Kido KOUASSI, Sub Regional Coordinator EnGRAIS IFDC Reducing Fertilizer Price At Farm Gate What Does It Take? The
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slide1. Cost build up webinar FERTILIZER COST BUILD-UP Main Findings of the Fertilizer Cost build up studies and process maps
Kido KOUASSI, Sub Regional Coordinator| EnGRAIS | IFDC<br>
slide2. Reducing Fertilizer Price At Farm Gate What Does It Take?<br>
slide3. The Fertilizer Journey Manufacturer/Trader
FOB(Cost + Margin): 250
Freight: 30 Importer/Blender
Insurance: 4
Port Charges: 20
Demurrage:
Bagging: 16
Transit: 61
Custom Clearance: 6
Unbagging: 3
Blending/Bagging: 25
Margin: 65 Distributor
Transport: 20
Margin: 30 Wholesaler
Transport: 10
Margin: 40 Retailer
Margin: 40 Farmer
Transport 280 $/MT 500 $/MT 550 $/MT 600 $/MT 640 $/MT
Or 16 000 CFA/50Kg Bag<br>
slide4. Detailed of costs build up At retail in Burkina Faso through port of Abidjan<br>
slide5. Summarized Cost build up Simple Fertilizer Vs NPK Abidjan, Burkina Faso, and Mali through port of Abidjan<br>
slide6. Optimizing the Cost : CFR Influence On CFR
International Markets
Oil, Fertilizer Commodity
Seasonality
Supply and Demand
Larger Volumes
Lower Shipping Cost
Bargaining with Supplier Freight per Carrier Size<br>
slide7. Optimizing the Cost : Importing Charges Influenced by
Stevedoring
Port Charges
custom clearance: Already Low
Bagging twice: Not Optimal<br>
slide8. Optimizing the Cost : Demurrage Daily Fee paid after Free Time
Terminal Authorities
Shipping company
Average 1USD per Ton per Day Causes
Weather
Congestion
Administrative delay
Slow Handling<br>
slide9. Optimizing the Cost : Avoiding Demurrage Policy
Wavers for Fertilizers
Priority Berthing Importer Level
Proactivity
Simplify Logistic
Negotiation<br>
slide10. Optimizing the Cost : Margin Margin Coverage
Financial Cost
Human Resources
Rents/Storage
Overheads
Profit Optimizing
Competion
Market Growth
Enabling Environment<br>
slide11. Taking The Knowledge from Port to Farms: The Fertilizer Cost Simulator Target: ​
Private Sector
Governments Fertilizer Acquisition Programs Objective: ​
Easy to use Tool to Evaluate Cost
Compare Logistic Options<br>
Kido KOUASSI, Sub Regional Coordinator| EnGRAIS | IFDC<br>
slide2. Reducing Fertilizer Price At Farm Gate What Does It Take?<br>
slide3. The Fertilizer Journey Manufacturer/Trader
FOB(Cost + Margin): 250
Freight: 30 Importer/Blender
Insurance: 4
Port Charges: 20
Demurrage:
Bagging: 16
Transit: 61
Custom Clearance: 6
Unbagging: 3
Blending/Bagging: 25
Margin: 65 Distributor
Transport: 20
Margin: 30 Wholesaler
Transport: 10
Margin: 40 Retailer
Margin: 40 Farmer
Transport 280 $/MT 500 $/MT 550 $/MT 600 $/MT 640 $/MT
Or 16 000 CFA/50Kg Bag<br>
slide4. Detailed of costs build up At retail in Burkina Faso through port of Abidjan<br>
slide5. Summarized Cost build up Simple Fertilizer Vs NPK Abidjan, Burkina Faso, and Mali through port of Abidjan<br>
slide6. Optimizing the Cost : CFR Influence On CFR
International Markets
Oil, Fertilizer Commodity
Seasonality
Supply and Demand
Larger Volumes
Lower Shipping Cost
Bargaining with Supplier Freight per Carrier Size<br>
slide7. Optimizing the Cost : Importing Charges Influenced by
Stevedoring
Port Charges
custom clearance: Already Low
Bagging twice: Not Optimal<br>
slide8. Optimizing the Cost : Demurrage Daily Fee paid after Free Time
Terminal Authorities
Shipping company
Average 1USD per Ton per Day Causes
Weather
Congestion
Administrative delay
Slow Handling<br>
slide9. Optimizing the Cost : Avoiding Demurrage Policy
Wavers for Fertilizers
Priority Berthing Importer Level
Proactivity
Simplify Logistic
Negotiation<br>
slide10. Optimizing the Cost : Margin Margin Coverage
Financial Cost
Human Resources
Rents/Storage
Overheads
Profit Optimizing
Competion
Market Growth
Enabling Environment<br>
slide11. Taking The Knowledge from Port to Farms: The Fertilizer Cost Simulator Target: ​
Private Sector
Governments Fertilizer Acquisition Programs Objective: ​
Easy to use Tool to Evaluate Cost
Compare Logistic Options<br>