The famous U.S. growth consulting company Frost & Sullivan in November released the latest research report shows that in 2012 the Asia-Pacific region sales of chemical fertilizers and bio-fertilizer market was $ 4.97 billion , is expected from 2012 to 2019 , the area of chemical fertilizers and bio-fertilizer sales growth will be $ 4.97 billion to $ 7.73 billion , representing a CAGR of 6.5 %. Australia, Indonesia and the Philippines will become the new market growth.
Frost & Sullivan analysts believe that the main driving factors have contributed to changes in the fertilizer market in Asia Pacific has four aspects . The first is rising crop prices . In Southeast Asian countries , oil palm and rubber trees are the main cash crops. Over the past few years , the prices of these crops has almost doubled , which prompted farmers to actively cultivate these crops , increase output . With the rising prices of cash crops , fertilizer consumption during the forecast period will grow rapidly.
The third is the demand for biofuels . Most Southeast Asian countries are dependent on oil imports . With the rapid depletion of fossil raw materials and crude oil prices are rising , people replace fossil fuels is increasing . Higher biomass yield and higher conversion rates of biomass , making more economical mass production of biofuels . Therefore , Southeast Asian countries actively using chemical fertilizers to increase crop yield rich biomass . Over the past few years , a steady increase in production of biofuels , Frost & Sullivan predicts that by 2017, biofuel production will reach 300 million tons. Therefore, the fertilizer market trend will also change .
Fourth, sustainability and cost efficiency. The negative impact of chemical fertilizers on the environment so that it becomes an alternative to provide plant nutrition bio- fertilizer. In contrast, bio-fertilizers can increase soil microbial communities and
Plants absorb nutrients , chemical fertilizers and the price is less than half . In addition, the continued use of bio-fertilizers farmers can save money because liquor inoculum growth , doubling will continue 2-3 years .
Meanwhile, Frost & Sullivan believes that the Asia-Pacific fertilizer market is also facing a number of constraints that hinder its growth. The first is the negative impact of excessive use of chemical fertilizers . And bio- fertilizers compared to chemical fertilizers to increase plant output faster , but excessive use of chemical fertilizers will destroy the relationship between plant roots and microorganisms such decrease nutrient absorption efficiency , and even lead to burn seedlings, crop eventually death . In addition, too many chemicals dissolved in water can cause surface water pollution .
Followed by higher costs and a shortage of raw materials . Since phosphorus and potassium Oceania declining stocks expected Oceania will stop mining activities. However, about 60% of the raw materials used in the manufacture of chemical fertilizers are derived from fossil material . This will lead to conflicting or raw material prices. Analysis of the industry , 50% of the cost of chemical fertilizer from raw materials, thus pushing up prices of raw materials will rise the price of chemical fertilizers .
Once again, turn the development of genetically modified crops will reduce fertilizer needs. GM crops can accelerate transfer of nutrients , reduce chemical fertilizers and bio- fertilizer needs. For example , rice is the main food crops in Southeast Asia .
In recent years , genetically modified rice to absorb nitrogen and their metabolism to become more efficient, which makes genetically modified rice yield increase and decrease the farmers’ demand for nitrogen fertilizers .
Limiting factor in the drive and the role of the two parties , the fertilizer market in Asia Pacific is formed a certain competition. In 2012, Asia-Pacific chemical fertilizers and bio- fertilizer market top four market participants – PT Pupuk Indonesia company , Yara International, Norway , PetroVietnam Fertilizer and Chemicals Corporation and Malaysian Chemical Co., Ltd. , with a total market revenue in 2012 90% capacity. Where , PT Pupuk Indonesia Company 2012 annual supply of 10.3 million tons , the market price amounted to 73.6% , making it truly become the market leader. The annual supply of Norwegian company Yara International has reached 900,000 tons , accounting for 6.4 % of the market share. Vietnam ranked third major petroleum fertilizers and chemical company in Vietnam to meet local urea supply , low cost of natural gas allows the company to growth and stability. Its market supply in 2012 was 800,000 tons , accounting for 5.7 % of the total market . Malaysia Chemical Co., Ltd. on 60 tons shipments market ranked fourth . The main competitive advantage lies in the particular land to provide the most suitable fertilizer.
