Our fertilizer products contain two of the most essential nutrients required for plant growth, nitrogen, which is generally the most important determinant of plant growth and crop yield, and sulfur, which allows crops to reach full potential in terms of yield, quality and protein content.
Nitrogen has the most consistent demand of all plant nutrients because it is a key determinant of yield and it depletes from the soil more rapidly than other nutrients and must be reapplied annually. According to the Food and Agriculture Organization, global nitrogen fertilizer use is projected to increase by 51% between 2005 and 2030 to meet global food demand. Increased grain consumption and pricing over the last five years1 have increased fertilizer demand, which, in turn, has resulted in increased nitrogen fertilizer pricing.
Sulfur is an important nutrient, which helps crops efficiently utilize nitrogen and phosphate. The sulfate form of sulfur, which is found in our products, is the most available form of sulfur for plants. According to the International Fertilizer Association (IFA) and CRU, the historical worldwide CAGR for ammonium sulfate is 2.7%, with the CAGR for Brazil and North America being 4.0% and 2.0%, respectively. Currently, our ammonium sulfate sales are targeted in Brazil and the U.S., the two largest consumers of ammonium sulfate.
1 For the last five years ended December 31,2011.