1.1 Market definition and scope
Like all living things, plants have certain nutritional needs that must be met in order to ensure their proper development. Four distinct needs have been scientifically identified: potassium (K), nitrogen (N), oxygen (O) and phosphorus (P). While oxygen is naturally present in the air, it is often necessary to ensure the supply of the other three elements in order to guarantee regular and high agricultural yields.
Nitrogen, potassium and phosphorus are therefore the basis for the production of of chemical fertilizers which is generally referred to as "NPK fertilizer" [ The World ]. These fertilisers are also called mineral fertilisers. Another category of fertilizer exists, that of natural or organic fertilizers (produced from plant or animal matter).
The use of fertilizers responds to an action of soil fertilization. The objective is to increase agricultural yields to meet a global demand for food that is increasing year after year. The fertilizer market is thus a constantly growing market.
1.2 The European market has lost momentum in recent years
Global agriculture today faces contradictory challenges. On the one hand, the year-on-year growth of the world's population increases the pressure on farmers and agricultural businesses. On the other hand, the total area of arable land is declining as a result of industrialization and urbanization, with an estimated loss of *.*% of arable ...
1.3 A French market trend similar to that of the European market
The French market is analysed here in two stages: national production followed by France's foreign trade.
The French production dynamic is similar to that of the European market. The national market has been losing momentum in recent years, reaching its lowest peak in ****. Over the observed period, the French ...
2.1 A sustained and growing national demand for fertilizer
French demand for nitrogen products and fertilizers has been on the rise in recent years, with the exception of ****, a year in which its annual consumption level reflects average harvests due to unfavourable weather conditions.
Fertilizer consumption France, ****-****, kg/Ha of arable land Source: ****
As the area of arable land ...
2.2 Geographical concentration of fertilizer demand
The map above shows the proportion of utilised agricultural area (***), as a percentage of the land area, by colour intensity. A very clear geographical concentration of French agricultural land is highlighted here, with more than **% of agricultural land located in the North and West of the country
It is therefore ...
2.3 French demand for fertilizers follows a desire to smooth purchases
Changes in the profile of farmers:
French farmers are increasingly trying to establish a smooth fertilizer consumption pattern. This smoothing behaviour allows them to spread out the average risk over a full year, which results in better annual visibility of production costs as well as better control of price risk management. ...
2.4 The evolution of the French agri-food market, closely linked to the demand for fertilizers
French demand for fertilisers (***). Fertilizer demand is truly an increasing function of these two markets.
Agricultural production in Europe Europe, ****, in % of the total value Source: ****
France is Europe's leading agricultural producer, and its production in **** accounted for just over **% of the total European production in that same year. This figure ...
3.1 Fertilizer production in decline
In this part, NAF code **.**Z entitled "Manufacture of nitrogen products and fertilisers" is considered. [***]
The drop in the French market for the production of nitrogen and the manufacturing of fertilizers in recent years (***), combined with poor harvest years in **** and ****, has had a direct and negative impact on the sector's ...
3.2 The organisation of producers and distributors
The Fertilization Industry Union [***] is an organisation with a twofold main objective: to ensure the satisfaction of agricultural needs in France, while limiting the ecological impact of the activity. UNIFA is engaged in the preservation of the environment by promoting reasonable soil fertilization and by controlling the quality of ...
4.1 Product typology
There are two main categories of fertilizers to be distinguished, chemical and natural fertilizers.
Produced from minerals that undergo a series of chemical transformations that allow an exact dosage of their composition, these are at the heart of the fertilizer market today. They have certain advantages, such as an ...
4.2 Evolution of fertilizer prices
Fertilisers are a crucial expense in agriculture. In France, it represents **% on average of farmers' supply costs and *% of their total costs. For the largest crops, these figures can be as high as **% and **% respectively [***].
Producer price index for nitrogen products France, ****-****, base *** = **** Source: ****
Over the period of **** to ****, we ...
4.3 Some external factors influence the price of chemical fertilizers
The fact that France's influence on the world market is very small compared to countries such as China, India or Brazil, means that the French supply and demand movements have little impact on the international market and prices. For example, according to Yara, in the event of a shock in French ...
4.4 The offer to individuals
Fertilizer consumption by private individuals represents a marginal share of the fertilizer market in France. Nevertheless, it is interesting to mention this small part of the market here, as the supply of fertilisers for private individuals has very different characteristics from the rest of the market.
Distribution: the distribution and marketing ...
5.1 European regulations on the sale of chemical fertilizers
The regulations are particularly aimed at the use and sale of mineral fertilizers because of their chemical dimension. In March ****, the European Union adopted the legislation of the future European regulation on the placing of chemical fertilizers on the market. This new legislation will come into force in spring ****, and is ...
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- Yara France
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