Global Demand

The long-term outlook for fertilizer consumption is very strong. According to the International Plant Nutrition Institute (IPNI) and the International Fertilizer Association (IFA):

• Global consumption will continue to grow throughout the short term, between 2010 and 2013 at an annual average growth rate of 5.6%.                                                                                
• Demand is expected to be weak through 09 and accelerate throughout 2010 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.