Since compound fertilisers are used widely in crop production, establishing private fertiliser compounding plants should be encouraged (ARDC, 2011). Prior to 1993, fertiliser prices were heavily subsidised. When subsidies were removed, domestic market prices rose to international levels and the government allowed the private sector to import and distribute fertilisers, providing import tax exemptions. Despite these measures and a lack of competition in the fertiliser market, most enterprises find it difficult to be profitable in fertiliser production (ARDC, 2011).