global fertilizer demand may rise 14pc

Global Fertilizer Demand May Rise 14% on Higher Food Demand

By Theresa Tang

July 9 (Bloomberg) -- Global fertilizer demand may rise 14 percent by 2012 as farmers increase plantings to benefit from high prices and growing food consumption, the International Fertilizer Industry Association said.

Demand may increase to 193 million metric tons by 2012, from 169 million tons in 2007, the Paris-based industry group forecast today during a presentation at a Shanghai conference.

Potash, used in fertilizers, reached a record this year amid a shortage of crops used for food, animal feed and biofuels. Prices of the soil nutrient may almost double to $900 a ton in the next two to three years, Potash One Inc. said yesterday.

``High energy and agricultural commodity prices help underpin the nutrient demand,'' Michel Prud'homme, secretary- general of the association, said at the conference. ``Continued world population growth and income growth in developing countries also spurs demand for food,'' he said.

Corn, driven by the demand for biofuels, has more than doubled in the past 12 months as global reserves are forecast to fall to a 24-year low. Wheat and soybeans, which also can be used in biofuels, have also reached records. Crude oil reached a record $145.85 a barrel on July 3.

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