Five Main Importers of Potash Fertilizer

Potash contains potassium, which is one of the three main agricultural fertilizers (the other two are phosphorus and nitrogen). Potash has been derived from organic plant ashes for centuries (hence the name pot-ash). In 1808, chemists derived potash from caustic potash by way of electrolysis. Potash is used in fertilizing agricultural land and also to a lesser extent in animal feed supplements, water filtration, aluminum recycling, snow and ice melting, and soap making. When added to crops, potash improves the water retention, nutrients, yield, and pest resistance of plants. The major importers of potash are Canada ,Brazil, and India.

The major suppliers of potash are relatively few companies located in Canada (which has nearly half of the world potash reserves), Canada potash fertilizer company has targeted its future goal to the whole world including the increasingly mature North American fertilizer market and the continuously rising Asian and South American market. Among them, China has been the largest potential fertilizer consuming market. China has 90 million agricultural population which covers 64% of the total population. We believe that the potash fertilizer consumption in China is amazingly huge. The increasing of income brings about the rising demand on meat,fruits and vegetables which has direct influence on potash fertilizer application.

Brazil is the second largest potash fertilizer importer and the amount last year was 7.7 million tons. Brazil is the superpower in the world agriculture field and the crops growing depends largely on potash fertilizer.

India has 1.2 billion population which accounts for 18% in the world. However, India only covers 11% of the agricultural acreage and the crops productivity is 20%-25% of that in America. Therefore, using potash fertilizer in a more balance and effective way is the only wise method for Indian people to make their limited agricultural acreage high productivity. Up to last year, India has imported potash about 2.7 million ton and listed as the NO.3 potash fertilizer importer. It is predicted that the total import amount of potash fertilizer will be exceeded 4 million tons in 2013.
Indonesia and Malaysia are respectively the fourth and fifth potash fertilizer importers, and the import amount is 2.4 million tons and 1.5 million tons. Southeast Asia region produces 85% palm oil and 40% rice for the whole world. Because of the limited agricultural acreage,the world’s increasing demand on palm oil and rice, the farmers are forced to apply more potash fertilizer to raise production. It is anticipated that the total import amount in these two countries will reach 2.6 million tons and 1.7 million tons.

By comparison of the five countries potash fertilizer import situation, make such a conclusion: on one hand, potash fertilizer demand has such a strong return trend that in the near future the main potash fertilizer importers will increase import amount to satisfy their requirements. On the other hand, China and India has completed their trade contracts and the agricultural products price will rise accordingly. This will stimulate farmers demand on potash fertilizer and make them to the major potash fertilizer consumers. According to the International Fertilizer Industry Association, demand will rise approximately by 4.7% through 2015. With a rising demand for potash from emerging economies and need for more efficient farming, the expected increase in supply should be able to meet this new demand.