The International Fertilizer Industry Association (IFIA) projects fertilizer demand will expand through 2016. The IFIA says demand is expected to grow 3.7% annually for potash, 2.3% for phosphates, and 1.5% for nitrogen. The report says low crop inventories and strong prices are expected to continue into the future which will stimulate fertilizer demand.
"In the next five years, reduced inventories and strong crop prices are expected to persist in the agricultural commodity markets because of the need to supply the fast-rising food, feed, fibre and bioenergy markets. This is anticipated to stimulate fertilizer demand, but high crop price volatility could result in significant year-on-year variations," says Patrick Heffer, Director of the IFA’s Agriculture Service.
The report also said about 250 new fertilizer plants around the world are projected to come into production in the next five years, but that about half of the projects face delays ranging from 6 to 18 months.
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