Toyota Tsusho to Open the First Full-Scale Fertilizer Plant in Kenya
-Improving agricultural productivity to achieve stable food supply-
Toyota Tsusho Corporation ("Toyota Tsusho") has built a fertilizer blending plant in Eldoret in the western part of the Republic of Kenya ("Kenya"). It will start productions and sales of fertilizer this month.
On August 15, 2012, Toyota Tsusho became the first Japanese company to sign a comprehensive memorandum for mutual cooperation with the Kenyan government to assist Kenya in realizing its national vision "Kenya Vision 2030*". In this context, Toyota Tsusho signed an MOU with the Kenyan government in 2014 to manufacture fertilizer. Then, in 2015, Toyota Tsusho established Toyota Tsusho Fertilizer Africa Limited ("TTFA"), a wholly owned subsidiary, and proceeded to construct a fertilizer blending plant.
Kenya, one of Africa's major agricultural producers, currently imports 600,000 tons of fertilizer every year. This is equivalent to the country's entire domestic demand, which is expected to increase as its agriculture develops further. However, transporting imported fertilizers is time-consuming and costly, and the fertilizers are not always suitable for the soil or crop, leading to acidification of farmland and reduced grain harvests. Establishing a domestic fertilizer manufacturing business has therefore long been a key issue.
TTFA has worked with the local Moi University, and international organizations AFAP and IFDC* to produce a balanced nutrition blended fertilizer suited to Kenyan soil and crops, developing a new brand called "Baraka Fertilizer*".
TTFA will begin to manufacture and sell fertilizers specially blended for maize and wheat, major agricultural products in Kenya, and another for rice grown in the Mwea District, Kenya’s main rice paddy district.
TTFA is currently conducting experimental tests at some 200 farms in the four major agricultural counties in Kenya’s west and in the Mwea District, and plans to continue working to improve the effectiveness of the fertilizer.
The new fertilizer is expected to improve agricultural productivity and contribute to the achievement of stable food supply.
3. Future Outlook
TTFA plans to promote fertilizer sales by leveraging the automobile sales network established by Toyota Tsusho over many years. It will also develop fertilizers suitable for legumes and sugar cane, diversifying fertilizer production for a wider range of crops. Furthermore, it will explorer opportunities for exporting to neighboring countries such as Tanzania and Uganda.
Toyota Tsusho will strive to contribute to Kenya's economic development through this fertilizer operation, and in a wide variety of fields.
Toyota Tsusho Fertilizer Africa LimitedLocation Western Kenya, EldoretEstablishment July 31, 2015Representative CEO Wada AkiraOwnership Toyota Tsusho 100%Employees 45 （including the part time jobs)Production capacity 150,000 tons/year
※ VISION 2030 This is a medium- to long-term development plan, formulated by the Kenyan government with the goal of increasing national income and improving the standard of living. Toyota Tsusho has formed project teams with the Kenyan government’s executive committee and is considering or promoting business operations in five key areas: automotive, electrical power/energy, petroleum/minerals, environmental conservation, and industrialization of agriculture. ※ AFAP Africa Fertilizer Agribusiness Partnership ※ IFDC International Fertilizer Development Center ※ BARAKA Fertilizer Baraka means "Blessing" in Swahili.