Global food prices are rising continuously, drawing significant attention to the fertilizer industry

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Source: Coal Chemical Industry Network http://www.mhgcy.ibicn.com/news/archive/201009/002671923520476856013.html At the beginning of August this year, Russia announced a temporary ban on the export of grain and its products from August 15 of this year until the end of the year. At the **main** council meeting held on September 2, Putin said that the issue of lifting the ban on grain exports should be discussed after clarifying details such as next year’s grain harvest. This means that the ban on grain exports, which was due to expire at the end of this year in Russia, is likely to extend until September, after the end of the grain harvest next year. 　　Chang Yizhi, a researcher in the chemical industry at CIC Consulting, pointed out that the unusual heat and drought conditions this summer led to a significant reduction in Russia’s grain production, forcing the country to **adopt measures to restrict grain exports. If Russia’s measures to restrict food exports continue until September next year, it will have a significant impact on the global agricultural products market, leading to an increase in global food prices. 　　Chang Yizhi further pointed out that rising world food prices will stimulate interest in agricultural production, thereby increasing the demand for agricultural inputs such as fertilizers. Currently, there is an increasing focus on industries related to food, particularly the fertilizer industry, which is closely linked to increased food production; the market has paid special attention to it this year. 　　For example, seeing the huge future market demand for fertilizers, BHP is currently seeking to acquire potassium-rich materials at high prices ； At the beginning of this year, Brazilian company Vale reached an agreement with Bunge Limited to acquire Bunge’s phosphate mines, manufacturing facilities, and other fertilizer-related assets in Brazil for $3.8 billion ； And Russian Sulaiman Krimov is also set to acquire a majority stake in Silvinit ； In addition, several Japanese trading companies are also highly interested in agricultural fertilizer and mineral resource investment projects. 　　Chang Yizhi believes that currently, the world’s population is continuing to grow, which will lead to an increasing demand for food. At the same time, the area of arable land is showing a tendency to decline, which will increase the pressure to boost food production per unit area of land. Applying fertilizers is one of the key ways to increase food production, and global demand for fertilizers is set to rise in the future. Zhang Yanlin, research director at CIC Consulting, also believes that due to factors such as severe drought in Russia, relatively dry climates in Argentina and Australia, as well as floods in Germany and Pakistan, global food supply will decrease. This will lead to an increase in international food prices, which in turn will be beneficial to the development of the fertilizer industry.