Concentration in the fertilizer industry
•Download as PPTX, PDF•
0 likes•121 views
The document discusses concentration in the fertilizer industry. It notes that fertilizer supply and trade are highly concentrated among a small number of countries. Specifically, three suppliers account for over half of urea supply, three-quarters of DAP/MAP supply, and four-fifths of potash supply globally. Major fertilizer companies tend to be headquartered in the top producing countries. Higher concentration means fertilizer prices are more linked and volatile to supply shocks. While nitrogen use declined 5% in 2022, phosphate and potash saw larger drops of 9% and 12% respectively due to varying reliance on fertilizers across regions and crops.
Recommended
More Related Content
What's hot
What's hot (20)
Similar to Concentration in the fertilizer industry
Similar to Concentration in the fertilizer industry (20)
More from International Food Policy Research Institute (IFPRI)
More from International Food Policy Research Institute (IFPRI) (20)
Recently uploaded
Recently uploaded (20)
Concentration in the fertilizer industry
- 1. 23rd session of the AMIS Global Food Market Information Group, 15-16 June 2023, Rome IFPRI – AMIS SEMINAR SERIES Market Concentration in the Grain Industry Delphine Leconte-Demarsy, AMIS Sep 7, 2023 Concentration in the fertilizer industry Concentration in the fertilizer industry – Sep 7th, 2023
- 2. 23rd session of the AMIS Global Food Market Information Group, 15-16 June 2023, Rome The importance of fertilizers for food production Source: IFA Concentration in the fertilizer industry – Sep 7th, 2023 • Mineral fertilizers replace nutrients removed with the harvest • Half of global food production relies on fertilizer applications • Macronutrients: Nitrogen (N), Phosphate (P), Potash (K)
- 3. 23rd session of the AMIS Global Food Market Information Group, 15-16 June 2023, Rome Market concentration Source: AMIS, USDA, FAO, IFA Concentration in the fertilizer industry – Sep 7th, 2023 • Most fertilizer supply is concentrated in a reduced number of countries • Phosphate and potash supply are comparatively more concentrated than nitrogen supply • Fertilizer trade is similarly concentraded
- 4. 23rd session of the AMIS Global Food Market Information Group, 15-16 June 2023, Rome Concentration of supply by geography Source: AMIS estimates for fertilizer production - 2021 N: Urea P: DAP & MAP K: MOP Concentration in the fertilizer industry – Sep 7th, 2023 • Three suppliers make up for 52% of urea supply, 74% of DAP/MAP supply and 81% of potash supply • Nitrogen is captured from the air, production relies on source of energy (coal, natural gas) • Phosphate and potash fertilizer production rely on the presence of phosphate and potash deposits
- 5. 23rd session of the AMIS Global Food Market Information Group, 15-16 June 2023, Rome Major industrial players reflect country distribution Source: Yara, AMIS Concentration in the fertilizer industry – Sep 7th, 2023 Company name Location CF Industries Illinois, USA Yara Oslo, Norway Nutrien Saskatoon, Canada Ostchem Donetsk, Ukraine OCI Amsterdam, Netherlands TogliattiAzot Tolyatti, Russia Koch Wichita, USA Eurochem Zug, Switzerland Guizhou Phosphorus Chemical group Guizhou, China Nutrien Saskatoon, Canada Mosaic Tampa, USA OCP Casablanca, Morocco Ma'aden Riyadh, Saudi Arabia Phosagro Moscow, Russia Nutrien Saskatoon, Canada Mosaic Tampa, USA Belaruskali Minsk, Belarus Uralkali Berezniki, Russia K+S Kassel, Germany Nitr oge n Phosphates Potash • Fertilizer majors are headquartered in the main producing countries • Some players are focused on one nutrient while others are present on different markets • Increasing geographical and vertical integration
- 6. 23rd session of the AMIS Global Food Market Information Group, 15-16 June 2023, Rome As concentration increases, volatility decreases Source: World Bank, AMIS Concentration in the fertilizer industry – Sep 7th, 2023 • Despite different supply, fertilizer price trends are linked and connected to global commodities • As potash buyers have less supply options, they are price takers • Fertilizer markets are sensitive to supply shocks
- 7. 23rd session of the AMIS Global Food Market Information Group, 15-16 June 2023, Rome Impacts on fertilizer use are complex Concentration in the fertilizer industry – Sep 7th, 2023 Source: AMIS, IFA • Nitrogen is the most used nutrient each year • Phosphate and potash reserves in the soil allow to skip applications to some extent • Some crops are more reliant on fertilizer use • Reliance on fertilizer uses depend on countries Estimates of Nutrient Use in 2022(million tons nutrients) and variation compared to 2020 Fertilizer year 2022 105.3 -5% 45.5 -9% 34.4 -12% 185.2 -5% N P K Total
- 8. 23rd session of the AMIS Global Food Market Information Group, 15-16 June 2023, Rome Thank you! delphine.lecontedemarsy@fao.org Concentration in the fertilizer industry – Sep 7th, 2023
- 9. 23rd session of the AMIS Global Food Market Information Group, 15-16 June 2023, Rome 71st Session of the Committee on Commodity Problems Side Event: Rome, 6 October 2016