Global Fertilizer Industry
The global fertilizer industry has been registering a steady growth rate in recent years. The market growth is primarily dependent on the extensive demand for fertilizers by farmers especially in the emerging economies across the globe such as China, India, Indonesia, Brazil, and several others. Moreover, breakthrough innovations coupled with the surging demand for bio-based and micronutrient fertilizers are expected to fuel the market growth over the forecast period. However, the global fertilizer industry has been hit hard by the recent outbreak of the COVID-19 epidemic across the globe. China, an epicenter of COVID-19, has been negatively impacted by the epidemic outbreak that took place in December 2019.
China is the most significant producer and consumer for phosphates, Sulphur, and sulphuric acids. The spread of the pandemic in the nation which prompted the government to put cities under lockdown has a perilous impact on the Chinese fertilizer industry. Manufacturing plants have been shut downed across the cities of the country which resulted in lower production of phosphates and other types of fertilizers. As a result of which, an increase in the price of phosphates and other types of fertilizers have been noticed during the outset of 2020. However, the Ministry of Agriculture and Rural Affairs has also stated that it will closely monitor the supply and price movement of chemical fertilizers in order to prevent the unusual surge in the prices.
Moreover, the outbreak of the deadliest virus which infected over 83,000 people in the country has forced the government to ban travel among all other precautionary measures. This prevented the movement of both fertilizers and raw materials moving in, out and around the country and particularly in Hubei province, resulting in the disruption of the supply chain of the industry. Plants have been put under locks from the end of January 2020, limiting both demand and supply for all relevant products. Although, the railway systems were continuing to a very extent loading and unloading have been constrained by the shortage of laborers.
Further, production rates of the fertilizers fell to nearly 20-30% of the total capacity causing adverse impact on the supply of phosphate fertilizer as well as on the demand for raw materials such as Sulphur and Sulphuric acid. Hubei province in China consumes nearly 25-30% of all sulphuric acid across China. The lockdown in Hubei province has given a heavy blow to the delivery network for sulphuric acid leading to storage constraints for many smelters across the country.
However, as of now as China seems to have effective control over the pandemic, COVID-19 is still rampaging at a significant pace in other parts of the world. The same logistic and production issues are now being felt in other regions of the world including Asia-Pacific, North America, Latin America, and Europe. With the advent of COVID-19 infected patients in India, it is becoming a major concern for many industries. The Indian government has announced a nationwide lockdown to lower the spread of the virus due to which several phosphate plants have been shut down and workforces have been quarantined. This is also resulting in the disruption of the supply chain of the fertilizer industry in the country as well as across the globe.
OMR Global Recently Published Report on:https://www.omrglobal.com/industry-reports/fertilizers-market-size
The Report Covers
- Comprehensive research methodology of the Global Fertilizer Market.
- This report also includes a detailed and extensive market overview with key analyst insights.
- An exhaustive analysis of macro and micro factors influencing the market guided by key recommendations.
- Analysis of regional regulations and other government policies impacting the Global Fertilizer Market.
- Insights about market determinants that are stimulating the Global Fertilizer Market.
- Detailed and extensive market segments with regional distribution of forecasted revenues.
- Extensive profiles and recent developments of market players.
Market Segmentation
Type
- Straight Fertilizers
- Complex Fertilizers
- Crop Type
- Grains and Cereals
- Pulses and Oilseeds
- Commercial Crops
- Fruits and Vegetables
- Others
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