Against the backdrop of growing global food security concerns, the fertilizer industry is undergoing unprecedented changes.
1. Global Fertilizer Price Volatility and Supply Chain Restructuring
In the first half of 2024, global fertilizer prices have retreated from their 2022 historic highs but remain above pre-pandemic levels. Supply chain disruptions caused by the Russia-Ukraine conflict have prompted countries to reconsider fertilizer supply chain security, with regional supply chain construction becoming a new trend.
| Fertilizer Type | Price June 2024 (USD/ton) | YoY Change |
| Urea | 350-400 | -25% |
| Diammonium Phosphate (DAP) | 550-600 | -30% |
| Muriate of Potash (MOP) | 300-350 | -40% |
2. Green Fertilizers and Sustainable Development
The EU’s “Farm to Fork” strategy and global carbon neutrality goals are accelerating the development of green fertilizers. According to IFA data, the global organic fertilizer market is expected to reach $12 billion in 2024, with an annual growth rate of 8.5%[1].
3. Integration with Precision Agriculture Technologies
Fertilizer companies are actively collaborating with agtech firms to develop smart fertilization solutions based on IoT and AI. Variable Rate Technology (VRT) can reduce fertilizer use by 15-20% while increasing crop yields[2].
4. Growth Potential in Emerging Markets
African and Southeast Asian countries are becoming the fastest-growing regions for fertilizer consumption. Governments in Nigeria, Indonesia, and other countries are increasing agricultural subsidies, with fertilizer demand in the region expected to grow by 4-5% annually from 2024 to 2026.
5. Tightening Policy Regulations
Many countries have introduced stricter regulations on fertilizer use and environmental impact. The EU’s revised Fertilizer Products Regulation will be fully implemented in July 2024, setting stricter standards for heavy metal content in fertilizers.
References:
[1] IFA (2024). Global Fertilizer Market Outlook 2024. [2] FAO (2023). Smart Fertilization Technologies Review.Data sources: World Bank, International Fertilizer Association, UN Food and Agriculture Organization
