2014-2015_factbook_2

australia, asia and pacific rim marketsAustraliaThe $49 billion farm sector in Australia produces a variety ofcrops including grains, vegetables, cotton, sugarcane andpasture land for livestock. With a relatively small populationof 24 million, Australia is a key exporter of wheat and barleyinto Asia and the Middle East. The three basic categoriesof fertilizers (nitrogen, phosphate and potash) are all usedas crop inputs in Australia. Demand for specialty productshas increased in recent years and many suppliers now offersuch products to suit the specific purposes of individualend users. Australian fertilizer demand growth is expectedto be relatively flat compared to historic trends.ChinaChina has the largest population in the world, with 1.4billion residents representing 21 percent of the globalpopulation. China has 8% of the world’s arable land atapproximately 110 million hectares. China has the largestagricultural production in the world by volume, and is theworld’s largest fertilizer market, accounting for nearly 30percent of the world’s demand. Rising annual incomes ofChina’s population are driving an improvement in diets andincreasing the amount of grain, dairy, fruits, vegetables andmeat consumed in China. China has increased croppingarea in recent years and its stated goal is to remain selfsufficientin grain production. Given a finite arable landbase, grain yields will have to increase to keep pace withdemand growth.IndiaForecasts indicate that by 2025 India will become the 5 thlargest consumer economy in the world. While urbanizationhas not occurred as fast as some parts of Asia, theurban population is expected to grow significantly in thecoming years. With this, comes a rising middle class whichis expected to surpass that of China over the next 10 years.India’s food consumption will increase with growth inpopulation and income. This will require a correspondingincrease in agricultural production, which in turn will driveincreased demand for crop nutrients.India has approximately 160 million hectares of arable land.The major crops in India are rice, wheat, millet, cotton andpulses. Fertilizer consumption in 2013 was 16.9, 6.9 and2.2 million metric tonnes for nitrogen, phosphate and potash,respectively. From 2014 to 2018, India’s compoundannual growth rate is estimated to be 2.5 percent annuallyfor consumption of nitrogen, phosphate and potash. In2013, crop protection product sales were $1.7 billion andseed sales were $0.6 billion.Indian agriculture is highly regulated as both fertilizer andcrop prices are controlled by the government.In 2013, crop protection product sales were $4.8 billion andseed sales were $0.2 billion.agrium australia retailLandmarknnnnDistributor of fertilizer and crop chemicals within Australia;Provides a wide range of agribusiness products andservices to farmers;Advisory services: agronomic, animal nutrition and wholefarm planning;Over 220 retail centers across Australia.Source: IFA Fertilizer Consumption 2012/13–2017/18 Country Reports, June 2013.FACT BOOK 2015Agrium 19