Fertilizers

Fertilizer is a natural or synthetic chemical substance or mixture that enriches soil to promote plant growth. The three primary nutrients that fertilizers provide are nitrogen, potassium, and phosphorus. In ancient times, and still today, many commonly used fertilizers contain one or more of the three primary ingredients: manure (containing nitrogen), bones (containing small amounts of nitrogen and large quantities of phosphorus), and wood ash (containing potassium).

At least fourteen different nutrients have been found essential for crops. These include three organic nutrients (carbon, hydrogen, and oxygen, which are taken directly from air and water), three primary chemical nutrients (nitrogen, phosphorus, and potassium), and three secondary chemical nutrients (magnesium, calcium, and sulfur). The others are micronutrients or trace elements include iron, manganese, copper, zinc, boron, and molybdenum.

Prices – The price of ammonia, a key source of ingredients for fertilizers, in 2002 fell to a 4-year low of per metric ton from in 2001, and was well below the 10-year average price of per metric ton. The average price of phosphate rock in the US rose 3% to .69 per metric ton from .81 per metric ton in 2001 and was above the 10-year average price of .98 per metric ton. The average price of potash in the US fell to a 3-year low of .00 per metric ton from .00 in 2001, and was right on the 10-year average price.

Supply – World production of nitrogen in 2002 rose +3.8% to a record high 109.000 million metric tons. The world’s largest producers of nitrogen in 2002 were China with 27.6% of world production, the US (9.9%), India (9.0%), and Russia (7.9%). US nitrogen production in 2002 rose +16% to 10.800 million metric tons.

World production of phosphate rock, basic slag and guano rose +7.1% to a 4-year high of 135.000 million metric tons in 2002 from 126.000 million metric tons in 2001. The world’s largest producers are the US with 26.7% of world production in 2002, China (17.0%), Morocco (17.0%), and Russia (7.9%). US production in 2002 rose +13.2% to 36.100 million metric tons from the record low of 31.900 million in 2001.

World production of marketable potash rose by +0.4% to 26.500 million metric tons in 2002 from 26.400 million metric tons in 2001. The world’s largest producers of potash in 2002 were Canada with 30.9% of world production, Russia (16.6%), Belarus (14.3%), and Germany (13.0%). US production of potash in 2002 was unchanged from 2001 at 1.200 million metric tons and accounted for only 4.5% of world production.

Demand – US consumption of nitrogen in 2002 rose +3.8% to 11.000 million metric tons. US consumption of phosphate rock in 2002 rose +5.9% to 37.400 million metric tons. US consumption of potash in 2002 was unchanged from 2001 at 5.300 million metric tons.

Trade – US imports of nitrogen in 2002 rose +2.6% to 4.670 million metric tons and the US relied on imports for 29% of consumption. US imports of phosphate rock in 2002 rose +8.0% to 2.700 million metric tons from 2.500 million metric tons in 2001. US imports of potash rose +7.7% to 4.620 million metric tons in 2002, and imports accounted for 80% of US consumption.