World potash market on recovery curve

The research company says world production of potash in 1988 hit a record 31 million tons; consumption also peaked. About 95% of potash consumption is accounted for by the fertilizer industry. The U.S. is the largest consumer of the mineral. Canada ranks as the world’s second largest producer of potash, behind the Soviet Union.

Since 1986, consumption has trended upward, mainly because of drought conditions in the U.S. which have necessitated the increased use of fertilizers. Consumption has also grown in China and a number of countries in Asia and Latin America where more advanced agricultural techniques have been introduced.

The potash market was hard hit in the early 1980s, and Roskill notes problems from that period have resulted in a number of structural changes to the industry. Several small producers have been absorbed by larger companies and some mines have been closed. New entrants to the potash market since 1986 include an Israeli company and another one in Jordan.

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