Double-Digit Yield Boosts Seen With Fertilizer Additive
A fertilizer is an essential industry serving global food production. According to the International Fertilizer Association (IFA), grain production is the most noticed agricultural activity, with global output estimated by USDA at 2.61 billion tonnes for the 2017 harvest. It would not be possible for grain producers to achieve this large-scale production without intensive agriculture and use of mineral fertilizers. Grains are the biggest end market for fertilizers, followed by cash crops such as vegetables, fruit, flowers, and vines.
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The growth of the agriculture industry contributes significantly to the economy of any country. According to the International Fertilizer Association (IFA), in 2016, nitrogen consumption, phosphate consumption, and potassium consumption increased by 2.4%, 4.5%, and 2.5%, compared to that in 2015. According to the association, during 2006–2016, the average consumption rates were 1.4%, 1.2%, and 2.3% for nitrogen, phosphate, and potassium, respectively. The IFA estimates nitrogen fertilizer demand growth at 1.1% per year through 2021, while the growth rate of phosphate and potassium fertilizers would be 1.6% and 2.2% a year, respectively. The demand for urea is estimated to grow at a higher rate is as most new N-capacity additions are in the form of urea.
Company Profiles
- Arkema Group
- Solvay
- Kao Corporation
- Chemipol S.A.
- Chemsol LLC
- Clariant
- Dorf Ketal
- Michelman, Inc.
- Omex Agriculture, Inc.
- Novochem Group
Growth Potential in Emerging Countries
Agriculture is essential to emerging market economies. According to the data published in 2018 by International Finance Corporation, globally, two-thirds of the world’s poor population (~750 million people) work in rural areas. Governments in countries such as Brazil are offering subsidies to reduce the cost of fertilizers to farmers. Brazil is the world’s fifth-largest fertilizer consumer, generating ~30 percent of its requirements and importing the rest. Also, it is the world’s second-largest importer of both phosphate fertilizers and potash.
Further, governments across the globe are announcing various initiatives to encourage farmers and lessen the burden of expenditure on them, thus providing them an access to fertilizers, as well as fertilizer additives; for instance, the government of Kenya set up a pilot e-fertilizer Subsidy Management System in 2015, which allows farmers to request, redeem, and reconcile fertilizer vouchers. Such transparent programs, supported by the advancements in information technology, are expected to contribute significantly to the growth of the fertilizer market in emerging nations during the forecast period.