The long-term outlook for fertilizer consumption is very strong. According to the International Plant Nutrition Institute (IPNI) and the International Fertilizer Association (IFA):
- Demand is expected to be weak through the first quarter of 09 and accelerate throughout the year as farmers deplete existing stocks and work to rebuild global grain inventories from current historic lows.
- By 2030 not only will the world population increase by 1.7 billion but the ratio of arable land to population is forecast to decrease by 40 - 55%. This means that we will need double average annual production gains of the past 30 years. ( Financial Times 13 April 2009)
- Asia and North America are the largest potash consumers, with Latin American demand fast catching up.
- The BRIC economist (Brazil, Russia, India and China) have been under-fertilizing for years, depleting the nutrient content from their soils.
- China needs to more than double its annual potash use to properly sustain its agricultural land and maximize yields.
- North American farmers are increasing fertilizer use to maximize production.
- India is expected to increase its potash consumption to improve crop yields for a burgeoning, more affluent population.
- In Brazil, where the major crops are large potash consumers, the need to import more of this vital nutrient is especially pronounced.
- Both Brazil and India increasingly rely on sugar cane output to produce ethanol.
