Fertilizer Outlook Released
IFA says situation is very similar to what happened in 2007.
Compiled by staff
Published: Jan 3, 2011
The International Fertilizer Industry Association has released its Short-Term Fertilizer Outlook 2010-2011. The report warns of rising agricultural commodity and food prices, as seen just before the food crisis of 2007/08. It also describes the global fertilizer industry's response to the challenge of increasing agricultural productivity worldwide. IFA estimates that the industry has invested some $40 billion in new capacity for the three main nutrients, nitrogen, phosphorus and potassium, in North Africa; West, South and East Asia; and North and South America.
IFA says the speed and extent of the recovery in the first half of 2010 surprised most analysts leading to an annual increase of 13% increase of sales and a 7% increase is consumption over 2009. IFA is projecting growth in global fertilizer consumption of 4.7% for 2010/2011 and 3.8% for 2011/12. By 2011/12, nutrient application rates would then have fully recovered to the levels seen prior to the economic crisis of 2008.
Patrick Heffer, Director of IFA's Agriculture Service, predicts another food crisis could be looming. Heffer points to the combination of the weather, trade restrictions, bioenergy growth and low stocks taking the industry back to three years ago. Based on the data analyzed, Heffer says it is a situation very similar to what happened in the second half of 2007, with all agricultural prices going up.
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Tagged: fertilizer, bioenergy
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