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Demand for fertilizers in China to reach 262 million metric tons in 2015.

Demand for fertilizers in China is forecast to increase 3.3 percent per annum through 2015 to 262 million metric tons. Sales of fertilizers will be supported by healthy expansion of agricultural activities as the amount of sown areas continues to grow and rural income levels rise. Farmers will continue to see steadily increasing incomes, the result of rising crop prices and government subsidies designed to supplement their revenues and reduce their material costs. Subsidies aimed directly at cutting the cost of fertilizers will encourage additional use. However, increasing demand for organic food and improved understanding of the correct application of fertilizers will prevent demand from growing at a faster pace. These and other trends are presented in Fertilizers in China, a new study from the Beijing office of The Freedonia Group, Inc., a Cleveland-based industry research firm.

Demand for fertilizer nutrients in China is projected to grow 4.4 percent annually through 2015 to 98.1 million metric tons. Nutrient demand will be driven by increasing use of higher nutrient level products as income levels grow in rural areas in China. In addition, government efforts to promote multi-nutrient fertilizers will also support gains in fertilizer nutrient demand.

Accounting for more than three-fourths of total fertilizer demand in 2010, single-nutrient fertilizers will remain the larger product type through 2015, despite a relatively low growth rate of 2.1 percent per year. Sales of single-nutrient fertilizers will continue to be supported by their relatively low prices. Multi-nutrient fertilizer demand will see strong annual growth of 7.3 percent through 2015, driven by government efforts to promote use.

The size, growth and composition of fertilizer demand in the six regions that make up China vary considerably, The Central-South and Central-East will remain the two largest regional fertilizer markets, together accounting for about 60 percent of total demand in 2015. Due to the comparatively high income levels in the Central-South and Central-East--which enable residents to afford more expensive food items-demand for cash crops such as fruits and vegetables will increase in these regions, which in turn will drive demand for fertilizer. Sales of fertilizers in the Northeast and Northwest regions will outpace the average through 2015, benefiting from the Great Western Development Strategy, the Northeast Revitalization Policy and increasing income levels for farmers.

Fertilizers in China (published 06/2012, 175 pages) is available for $5400 from The Freedonia Group, Inc., 767 Beta Drive, Cleveland, OH 44143-2326. For further details, please contact Corinne Gangloff by phone 440.684.9600, fax 440.646.0484 or e-mail pr@freedoniagroup.com. Information may also be obtained through www.freedoniagroup.com.

A limited license to use or reprint information from this news release is granted to you provided attribution for the same--including, if possible, the price of the report--is given to The Freedonia Group, Inc. (Cleveland, OH). We would also appreciate the courtesy of receiving a copy of the article or publication in which we appear.
FERTILIZER DEMAND IN CHINA
(000 metric tons)

 $ Annual Growth

Item 2005 2010 2015 2005- 2010
 2010 2015

Fertilizer Demand 187100 222500 262000 3.5 3.3
 Single-Nutrient 156000 173000 191500 2.1 2.1
 Multi-Nutrient 31100 49500 70500 9.7 7.3
COPYRIGHT 2012 Subscription: $00.00 per year as of 1/94. Published irregularly. Contact Freedonia Group, 3570 Warrensville Center Rd. Suite 201, Cleveland, OH 44122. Phone (216) 921-6800. Fax (216) 921-5459.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2012 Gale, Cengage Learning. All rights reserved.

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Comment:Demand for fertilizers in China to reach 262 million metric tons in 2015.
Publication:Research Studies - Freedonia Group
Geographic Code:9CHIN
Date:Jul 16, 2012
Words:530
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