16:27 UK, 12th August 2010, by Agrimoney.com
World potash volumes to double within five years

The rally in crop prices is to fuel a faster-than-expected rebound in world potash sales, which will double in five years, Europe's biggest producer of the nutrient said.

K+S lifted its estimate for industry potash volumes this year to a straight 50m tonnes, the upper end of its previous forecast range, and representing a 56% jump from 2009, when low crop prices and tight credit sapped farm demand.

The revision puts the German-based group in line with sector giant PotashCorp, but above the 46m-48m tonne estimate outlined by America's Mosaic last month.

And Norbert Steiner, the K+S chief executive, added in comments to analysts that further growth was expected next year, when world potash sales would hit 53m-57m tonnes, with volumes hitting a record 60m-64m tonnes in 2014.

Farmers prosper 

The forecasts reflected hopes that the increase in crop prices, and "the resultant improved future income situation of farmers", would increase demand for fertilizers.

The potash rebound, as seen by K+S

2014: 60m-64m tonnes

2011: 53m-57m tonnes

2010: 50.0m tonnes

2009: 32.0m tonnes

2008: 54.5m tonnes

Data: industrywide world potash sales
Furthermore, the raised consumption would feed directly through to producers' sales, following a run-down in dealers' inventories.

Furthermore, the raised consumption would feed directly through to producers' sales, following a run-down in dealers' inventories.

"Most of the volumes demanded by the trade sector in the first quarter in Europe were consumed by farmers, so that the stocks are again at a relatively low level before the upcoming autumn application [season]," K+S said.