The bulk of Wilmar’s fertiliser business and market is in Indonesia. We are one of the largest fertiliser players in Indonesia, with 1.2 million MT production capacities dedicated to nitrogen, phosphorus and potassium (NPK) compound fertilisers. We also engage in the trading and distribution of various straight fertilisers and agrochemicals, making us a one-stop supplier of agriculture inputs. The fertiliser business has been geared towards the oil palm sector, in line with our core business. The remarkable growth in new planted acreages in the past decade has resulted in a rising demand for fertilisers, thereby leading to the expansion of the fertiliser business unit. Customers of the fertiliser products are also our suppliers of fresh fruit bunches, crude palm oil and palm kernel, thus we have been able to minimise our credit risk. Supported by our extensive distribution channels and logistics networks built over the years, we have been able to maintain substantial market shares of NPK and potash in Indonesia. We are also the appointed distributor of Canadian potash, Peruvian rock phosphate and USA borate in Indonesia.

The expansion of fertiliser operations into Malaysia in the second half of 2015 provided an opportunity to tap into the demand of the world’s second largest oil palm producer. Similarly supported by its own NPK production line and logistics facility, our fertiliser business in Malaysia is well-positioned to develop and complement our existing operations particularly in East Malaysia.

At present, our total installed capacity of NPK compound is 1.3 million MT per annum in Indonesia and Malaysia, and our total fertiliser sales volume is more than 2 million MT annually. Besides Indonesia and Malaysia being the backbone of our fertiliser markets, we are also shipping our products to other countries in South-East Asia as well as Africa, predominantly to the oil palm plantations sector.