Facts for Sammy the boy...The world's population has been steadily increasing since the second half of the 20th century. This number is expected to reach 9 billion people by 2050.
A rising population consumes more food. In order to meet the increase in demand, farmers need to increase the quantity and quality of their crop yields. Improving the quality of their fertilizers is the most efficient and realistic way to do this.
The world economy has been expanding at an average of 5% per year. However, the economies of the developing nations, especially of large countries such as India and China, have been growing at a rate of 9% - 10% annually. An expanding economy means rising wealth levels in these countries.
With increased income, people demand more protein-rich diets, significantly influencing meat consumption. Meat consumption in China, for example, tripled in the last 20 years as per capita income grew, and is expected to continue further.
The feed for animals becomes an important factor in replenishing meat supply. Maximizing yield crops serves as a key ingredient in improving the quantity and quality of feed for livestock.
The increasing demand for meat in emerging markets is causing farmers to convert agricultural crops into pastures for livestock, further diminishing arable land.
Of the earth's 57 million square miles of land, approximately 8 million square miles are currently arable. However, arable land is being lost at the rate of about 40,000 square miles per year.
Consequently the remaining farm land needs to be more productive and deliver higher, more efficient yields. There is only one way this can be accomplished: with fertilizer. Potash is a crucial element in fertilizer and has no commercial substitute.
So Sammy the boy, as you can see, the demand for potash over the next 20-40 years will be tremendous, requiring more production of potash, and a monopoly of potash will only drive the countries needing the potash to build their own potash mines so they dont have to deal with the monopolizers....
End of Lesson 2 for you sammy....