In its report titled ‘world fertiliser trends and outlook to 2018’ the United Nation’s Food and Agriculture Organisation (FAO) noted that in 2014, world cereal production reached 2.5 billion tonnes, which was 2.2% below that of the record production in 2013.
The FAO noted that world food prices have continued to ease and world fertiliser nutrient (nitrogen plus phosphate plus potash) consumption was estimated to reach 187 million tonnes in 2014, up by 2% over 2013.
World demand for total fertiliser nutrients is estimated to grow at 1.8% per annum from 2014 to 2018. The demand for nitrogen, phosphate, and potash is forecast to grow annually by 1.4%, 2.2%, and 2.6%, respectively, during the period.
Over the next five years, the global capacity of fertiliser products, intermediates and raw materials will increase further. The global potential nitrogen balance – that is, the difference between nitrogent potentially available for fertilisers and nitrogent fertiliser demand) as a percentage of nitrogen fertiliser demand is expected to steadily rise during the period to 2018, from 3.7% in 2014, to 5.4% in 2015, and then 6.9% this year, a further 8.8% in 2017 and reach 9.5% in 2018. The global potential balance of phosphorous is expected to rise from 2.7Mt in 2014 to 3.7Mt tonnes in 2018 or from 6.4% of total demand to 8.5%.
“The global potential balance of potassium is expected to rise significantly from 8.7Mt in 2014 to 12.7Mt in 2018, or from 25% of total demand to 33%,” the FAO report notes.
“The Africa region is likely to remain a major exporter of phosphate, followed by nitrogen, but would continue to depend solely on import of potash. North America would increase its supply of nitrogen fertiliser but continue to rely on imports. Its phosphate export may reduce slowly and the potash balance of the subregion is world fertiliser trends and outlook to 2018 expected to increase.
“Latin America and Caribbean will continue its dependence on imported nitrogen, phosphate and potash during the forecast period.
“The dependence of east Asia on nitrogen imports is expected to continue, with the import of potash increasing during the period.
“The subregion would, however, continue to be a net exporter of phosphate during the period.
“West Europe would continue to remain in surplus in potash and in deficit in nitrogen and phosphate. Central Europe would continue to be in deficit in phosphate and potash. The surplus balance of nitrogen in the subregion will marginally decline. Oceania region would continue to be in deficit in all the three nutrients,” the FAO report said.
The overall equation for ongoing growth in potash demand however is simple: Potash is the common term for fertiliser forms of the element potassium. The name derives from the collection of wood ash in metal pots when the beneficial fertiliser properties of this material were first recognised many centuries ago.
Potassium is one of three key fertiliser macro-nutrients essential for healthy soil and plant growth. It is generally used in combination with the other two macro-nutrients, nitrogen and phosphorus, to produce a range of fertilisers, the type used being dependent on the soil to which it will be applied.
Potassium is essential to the workings of every living plant cell. It not only plays an important role in plants’ water utilisation but also helps regulate the rate of photosynthesis. Potassium promotes the growth of strong stalks, protects plants from extreme temperatures and enhances their ability to cope with stress. Importantly, there is no substitute for potash.
Commonly, potash refers to potassium chloride or muriate of potash (MOP), however, a number of other potash variants exist with premium potash types containing micro nutrients as well as macro nutrients such as potassium sulphate, potassium magnesium sulphate and potassium nitrate.
Potassium-bearing minerals are typically found in areas where ancient inland seas have evaporated leaving behind their minerals.
Sulphate of potash (SOP) is a premium potash fertiliser which currently trades around $700/t, of which supplies are limited. A big advantage of SOP is that it does not contain chloride.
SOP substantially boosts plant health and crop yield and is used on speciality, high-value crops including almond nuts, vegetables and fruit.
