Market growth drivers for potassium nitrate Seite 1 von 4

Market growth drivers for potassium nitrate

The growing importance of specialty plant nutrition products, such as potassium nitrate, is reflected in the fact that
their global consumption has more than doubled over the last decade, whereas the growth rates of other alternatives,
such as commodity fertilisers, have been more moderate (SQM, 2009). The impressive growth rate of specialty plant
nutrition products, such as potassium nitrate, can be attributed to:

1) Growing world population and its effects on:

a. Scarcity of water, suitable for agriculture, which triggers a call for higher water use efficiency. For
example, this can be achieved by switching from furrow irrigation to drip and sprinkler irrigation. Both
techniques allow for fertigation, which is the joint application of water and specialty plant nutrition
products such as potassium nitrate.
b. Increased competition on land use for living, industry, nature and agriculture, which results in less
availability of land for agriculture. This requires higher yields per area of land in order to provide
sufficient food, feed, fibre and fuel for the growing world population. Fertigation techniques will
contribute to higher marketable yields per area of land.
c. Water scarcity, reduced arable land availability at a higher cost per area, and higher energy and nutrient
input costs, trigger a call for fertigation and increased water, nutrient and energy use efficiencies. This
will result in maximum marketable yields, less input costs per kg yield, thus a higher net income for the
grower.

These three key drivers for increased use of potassium nitrate will be discussed in more detail below.
>>See below<<

2) Increased per capita consumption of vegetables.

3) Growing demand for high-quality foods.

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Growing world population. According to the United Nations (UN) 2008 estimates and medium variant projections,
the world population is estimated to increase from 6,8 billion in 2009 to 8,0 billion people in 2025, and to 9,15 billion in
2050 (Figure 1) (United Nations, 2009).

Figure 1. UN 2008 estimates and medium variant projections of the growth of the world population (in billions). (
Click on the figure to enlarge, Click here to open and print the figure)

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Market growth drivers for potassium nitrate Seite 2 von 4

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a. Scarcity of water, suitable for agriculture, which triggers a call for increased water use efficiency.

Food production places a high demand on fresh water: 69 % of current water withdrawals are for irrigation in
agriculture (Figure 2) (2030 Water Resources Group, 2009). The 2030 Water Resources Group (2009) mentioned
further investment in drip irrigation as one of the big agricultural opportunities to increase the water use efficiency in
order to make water available for alternative uses elsewhere.

Figure 2. Main water withdrawal segments. Click on the figure to enlarge, Click here to open and print the
figure)
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b. Increased competition on land use for living, industry, nature and agriculture, which results in less
land, available for agriculture.

Land in agricultural use is 12 % of the total world land use (Table 1) (FAOSTAT data, 2009).

Table 1. World land area and uses.

Land use 2007

Million ha %

Total world land area 13.000 100

Land use non arable & non permanent 8.068 62

Land under permanent pasture (prairie, grazing land) 3.378 26

Land in agricultural use (arable & permanent crops) 1.554 12

Land in agricultural use (arable land and land under permanent crops) in the world has increased over the last 40
years with about 11 % from 1.406 million ha in 1968 to 1.554 million ha in 2007 (FAOSTAT data, 2009). World
population grew in the same period by 86 %. Consequently, the amount of land in agricultural use per capita
decreased in time (Figure 3) and will further decrease in the future, as the world population is estimated to grow faster
than the growth of arable land. Therefore, crop productivity per ha of arable land has to increase in order to provide
the same amount of food for the world population.

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Figure 3. Population estimates and land use of arable and permanent crops, expressed in m per capita. ( Click on
the figure to enlarge, Click here to open and print the figure)

Furthermore, it is estimated that poor drainage and irrigation practices have led to waterlogging and salinization (salt
build-up) of about 27 million ha or 10 % of the worlds irrigated lands, thereby reducing productivity and limiting the
agricultural use of arable land (FAO, 2003). From this, about 0,25-0,5 million ha are estimated to be lost from
production every year as a result of salt build-up (FAO, 2002).

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c. Water and nutrient use efficiency

The use of drip irrigation results in the highest water use efficiency of 85% (Table 2) (Laegreid et al, 1999).

Table 2. Water use efficiency per type of irrigation system.

Irrigation system Water Use Efficiency (%)

Surface system in Asia* 30

Surface system in developed countries** 37

Sprinkler system 60

Drip irrigation 85

* mostly paddy fields.

** mostly furrow irrigation.

The nutrient use efficiency is highest with a drip irrigation system, compared to furrow or sprinkler irrigation (Table 3)
(Fertirrigaco, 1999).

Table 3. Nutrient use efficiency per type of irrigation system.

Nutrient Use Efficiency per irrigation system %N % P2O5 % K2O

Furrow 40-60 10-20 60-75

Sprinkler 60-70 15-25 70-80

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Drip 75-85 25-35 80-90

References:
2030 Water Resources Group, 2009. Charting our water future economic frameworks to inform decision making.
185 pp.
http://www.mckinsey.com/clientservice/water/charting_our_water_future.aspx
FAO, 2002. Crops and Drops making the best use of water for agriculture. Rome 2002. 22 p.
FAO, 2003. Agriculture, food and water. A contribution to the World Water Development Report. 61 p.
FAOSTAT data, 2009. http://faostat.fao.org/site/377/default.aspx#ancor
Fertirrigaco: citrus, flores, hortalias. Marcos Vincius Folegatti coordinador Guaba: Agropecuria. 1999. 460 p.
ISBN 85-85347-48-1.
Laegreid, M., O.C. Bockman and O. Kaarstad, 1999. Agriculture, fertilizers, and the environment. p.42. ISBN 0 85199
358 3.
SQM, 2009. SQM Annual Report 2008.
United Nations, 2009. Population Division of the Department of Economic and Social Affairs of the United Nations
Secretariat, World Population Prospects: The 2008 Revision, http://esa.un.org/unpp

Last Updated on Tuesday, 22 June 2010 13:51

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