D-8 Secretary General Visited Top Turkish Fertilizer Producer GUBRETAS, Aiming at Food Security Cooperation within D8

Istanbul, Turkey | June 25, 2009 by D-8 Secretariat

D-8 and GUBRETAS pledged their affirmation to cooperate more intensely in the fertilizer sector to support D-8 program of food security

D-8 made a courtesy visit to Turkish top rated Fertilizer manufacturer, GUBRETAS, earlier this month. Both pledged their affirmation to cooperate more intensely in the fertilizer sector to support D-8 program of food security.

The Developing Eight Organization for Economic Cooperation (D-8) — a trade alliance of developing countries comprising the 930 million people of Bangladesh, Egypt, Indonesia, Iran, Malaysia, Pakistan, Nigeria and Turkey — earlier this year had a special Ministerial Meeting on Food Security in Kuala Lumpur, Malaysia, to solve the asymmetric situation of the potency of the member countries and its relation to the need to produce enough food by conducting joint investment in the fertilizer industry and other efforts.

Led by D-8 Secretary General, Dipo Alam, the organization met with Mehmet Koca, the member of board as well as the Chief Director at GUBRETAS. The talks commenced on the latest progress that has been made since the Kuala Lumpur meeting, ranging from the Iranian factory purchasing project, the continuation project between Indonesian fertilizer company, PT PUSRI with the Iranian counterpart, as well the the possibility over cooperation expansion with Turkish fertilizer manufacturer.

Koca said that the cooperation between GUBRETAS and Iranian Razi Petrochemical Co. has produced a growth of 372% in 2008. “During 2007 we had growth at 393,9 million TL, while last year in 2008 that number has increased to 1,9 billion TL,” said Koca. GUBRETAS had bought 47,81% of Razi Petrochemical share in May 2008, and has since produced net profit for the first 9 months amounted to 201,7 million TL.

“We are happy with the investment that we had in Iran,” said Koca. GUBRETAS has increased 56,7% of domestic sales to 949,2 million TL, while the export volume has folded 41 times to 484,4 million TL.

GUBRETAS welcomed the offer made by D-8 to intensify deeper cooperation within the member countries, such as Iran, Indonesia, and Nigeria. As transpired in the talk, D-8 will send visibility study of the fertilizer companies in Indonesia, and GUBRETAS shall study it seriously to explore possible cooperation scheme. Dipo Alam also proposed that GUBRETAS consider the opportunity that laid ahead in Indonesia, especially with relation to the investment in the ASEAN fertilizer industry in Aceh, which posses good chance of improvement.

Four of D-8 member states have proven gas reserves that are usable for fertilizer industry: Iran ranks number two after Russia, which reflects 15.7 percent of the world’s total proven gas reserves; Nigeria ranks seventh with 3.0 percent; Indonesia ranks 11th with 1.7 percent; and Malaysia ranks 15th with 1.4 percent of the world’s gas reserves.

If Iranian gas and Nigerian gas could be optimized to produce fertilizer, as planned by the D-8, it is expected that the supply of sufficient fertilizer to developing countries could significantly help feed the world’s hungry people. In addition, for example, trade between Iran and Turkey, Pakistan and Bangladesh will boost the economy of the Mediterranean region, South Asia and Central Asia.

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