Oct 22, 2012

Latest market reports show spurt in fertilizers and agrochemicals in traditional and emerging markets

One of the bare essentials no matter how advanced our civilization and technology become is food and that is precisely the reason why the fertilizers and agrochemicals industry has done so consistently well in the past decade or two. That growth story though took a slight detour and a small pause in 2009, when the global economic setback ensured that the brakes were put on the growth story.

fertilizers and agrochemicalsThe setback though now seems only a minor glitch as the fertilizers and agrochemicals market has registered a constant growth in the past two years and the same is expected to continue till 2017.

Fertilizer prices have gone up steadily in the last few years along with prices of agricultural tools and supporting technology. The high agricultural prices have given the industry a constant growth rate of around 3.3 percent that is set to continue around a similar mark for the next 5 years.

In fact, the total revenue for the year of 2012 is being modestly calculated as $147.2 billion, which is already 2.2 percent up from the total revenue garnered by fertilizers and agrochemicals in 2011.

Of course, the biggest strength of the industry is the expanding markets and constant demand that should ensure that the upswing continues without any hindrance.

The growth of the fertilizer and agrochemicals industry is expected to draw largely from the new markets that will open up in Asia and South America over the next decade or so. This along with strong traditional markets that are also looking for new ways to further increase crop yield should help significantly. Since neither is global population going to recede and nor is the necessity to feed more hungry mouths, there really is little that can go wrong for the industry.

That’s aid, growing energy prices, volatile economies and supply and demand disparity will be still concerns that would give an odd jitter or two to those invested in this sector. Despite that, it is a certain thumbs up when it comes to the road ahead for the sector.

Leave a comment