The fertilizer market in France

Modern agriculture relies on the use of fertilizers, which are essential to obtain acceptable yields and thus to pay farmers properly. Fertilizers fall into two categories: natural (or organic) fertilizers, which result from the decomposition of plant or animal matter, and chemical (or mineral) fertilizers, which are of mineral origin and have undergone several chemical transformations in order to possess the required qualities. We also distinguish between straight fertilizers, made up solely of nitrogen, phosphorus or potassium, and complex fertilizers, made up of a mixture of at least two of the above-mentioned substances, or even all three. Nitrogen fertilizers are the most widely used in agriculture today.

The global market is booming. It is expected to record a CAGR of 2.9% over the period 2024 - 2034. Asia-Pacific is the region with the largest market share, at around 50%, with China dominating with 53%.

Europe has recently experienced a number of crises that have shaken up the fertilizer market. Indeed, since the end of 2020, raw material prices have soared, sharply increasing fertilizer selling prices. This is due to the central role played by natural gas in the production of certain fertilizers, which can account for up to 80% of the production price. Then the Russian-Ukrainian conflict turned the market upside down. Indeed, since February 2022, Russia, which was the 2ᵉ biggest fertilizer exporter after China, has reduced its exports, leaving European countries deprived of fertilizer.

France has not escaped these ordeals, but has come through them well, recording record production in 2022, before returning to values more in line with the long-term trend in 2023, but still above pre-Covid values. Farmers, on the other hand, are in a difficult situation, and although Russia has started exporting en masse again, and prices have fallen again, demand is no longer there. Indeed, many farmers have decided to use less fertilizer or to change crops in favor of less fertilizer-intensive species.

In addition, natural fertilizers are gaining ground on chemical fertilizers as a result of collective environmental awareness. As a result, the French fertilizer market, greatly weakened by the many crises it has undergone, is undergoing a veritable revolution and must adapt to new demands.