Supply & Demand

Overview

The leading drivers for fertilizer sales are a heightened demand for protein-rich food, explosive global economic growth and a new reliance on biofuels.

Hence, fertilizer and grain prices will remain high as global grain stocks are stressed by an expanding population base, an emerging bio-fuel industry and the stark fact that the world is losing arable land at a rate of 1% annually.

Faced with increasingly limited arable land, the intensification of agriculture will focus on increasing and balancing soil nutrients to achieve higher yields of food and energy crops. Increased fertilizer application is the only solution. In turn, this translates into an exponentially increasing demand for potash-based fertilizers. 

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