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Fertilizer Demand Seen Rising 2.1% Annually by Industry

World fertilizer demand is expected to climb an average 2.1 percent a year by the 2016-17 season to 193 million metric tons, the International Fertilizer Industry Association said.

Global demand for fertilizer is expected to climb 2.5 percent in 2012-13 to 181 million tons of nutrients, after growing 2.8 percent in 2011-12, the Paris-based IFA wrote in an e-mailed report yesterday.

Average annual growth in potash demand is seen at 3.7 percent, compared with 2.3 percent for phosphates and 1.5 percent for nitrogen fertilizer, according to the group. Demand for fertilizer is rising steadily as tight market conditions for oilseeds and corn giving farmers an incentive to boost production, the IFA said.

“In the next five years, reduced inventories and strong crop prices are expected to persist in the agricultural commodity markets,” Patrick Heffer, director of the IFA’s agriculture service, was cited as saying. “This is anticipated to stimulate fertilizer demand, but high crop-price volatility could result in significant year-on-year variations.”

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