Growth in Fertilizer Consumption Closely Tied to Rising Food Demand

Fertilizer consumption followed a relatively steady upward trend over the 15 years prior to the global
economic downturn that began in late 2008. Growth rates over this period closely matched increases in
world crop production. This relationship is underpinned by basic crop science as nutrients removed from
the soil must be replaced to protect its productivity.
Potash has experienced the highest annual growth rate greater than 3 percent over this 15-year period
as farmers in the developing world have only recently begun to address its long-term under-application
compared to the other two nutrients.
World Fertilizer Consumption

Most ammonia is consumed in its domestic market because it is expensive and difficult to transport.
China is the largest ammonia market, consuming almost one-third of global supply. Although it is the
worlds largest producer, China uses virtually all its supply domestically, so it is not a significant factor in
global trade.
North America is the largest ammonia importer and typically accounts for approximately 35-40 percent of
world trade. Europe, a higher-cost producer, accounts for about 25 percent.
The former Soviet Union, Latin America, the Middle East and North Africa are the primary exporting
regions for ammonia due to their lower-cost gas positions and limited domestic consumption.

World Ammonia Sales Profile


Nitrogen Demand Is Strengthening
Growth in global nitrogen trade has been driven by rising demand, expansion of low-cost export supply
and plant closures in key import markets.
After a sharp decline in 2009, trade is expected to rebound to pre-downturn levels in 2010, supported by
a recovery in industrial nitrogen demand, strong fertilizer consumption and low distributor inventories.
With limited expansion capabilities and rising demand, we expect the majority of import growth will occur
in Asia and Latin America.

World Nitrogen Trade