The fertilizer market - France

Since 2020, the global fertilizer market has witnessed significant disruptions due to external factors such as soaring raw material prices and geopolitical tensions, particularly the Russian-Ukrainian conflict. Natural gas, which can comprise up to 80% of production costs for certain fertilizers, experienced a dramatic price increase after the health crisis, hampering production and leading to skyrocketing prices for fertilizers. The reduction in exports from major players like Russia, which had paused exports and only resumed at the end of 2022, created a shortage in Europe, where the production of fertilizers was adversely affected, with up to 70% of operations halted in September 2022. As a response to these conditions, many farmers opted to use less fertilizer or switched to crops that require less of it.

In France, fertilizer sales within the manufacturing sector surged to €4.059 billion in 2022, but the industry is not immune to global conditions, and demand has seen a decline in parallel with the challenges in the market. Despite the boom in global demand which is reflected in a projected CAGR of 3.3% from 2023 to 2032, the French market has been experiencing a dramatic shift towards natural fertilizers, with UNIFA reporting a 24% drop in mineral fertilizer deliveries in the 2022/2023 period. Overall, the fertilizer market is undergoing a transformation as it navigates through supply constraints, price hikes, and the changing preferences of farmers in response to environmental considerations.

Market Insights: The Complex Landscape of Fertilizer Demand in France

The French fertilizer market, a crucial component of modern agriculture, is witnessing a phase of transformation and challenge. The necessity to maintain crop yields drives the persistent need for fertilizers, dichotomized into natural and chemical categories based on composition and production processes. However, recent crises, notably the soaring raw material prices and geopolitical tensions stemming from the Russian-Ukrainian conflict, have significantly impacted market dynamics and demand. France has a long-standing reliance on fertilizer imports due to its lack of domestic resources for production.

The turbulence caused by external factors has resulted in a steep increase in fertilizer prices, pushing farmers into difficult positions. With Russia, previously the second-largest fertilizer exporter globally, cutting back its exports, European countries, including France, faced acute shortages. Despite a resumption of exports from Russia and a subsequent price decline, the French market is experiencing muted demand. Farmers are adapting by reducing fertilizer use or opting for crop varieties that are less demanding in terms of fertilizer inputs. In response to environmental concerns, the push toward natural fertilizers is becoming evident, challenging the dominance of chemical fertilizers in the market.

Yet, the production of natural fertilizers in France appears to be somewhat stagnant, underlining the complexity of this market transition. The French fertilizer market is not only a reflection of Europe's broader struggles but also of the specificities of French agriculture itself. The overall trend displays a lengthy period of declining mineral fertilizer consumption—down by as much as an estimated 45% over three decades. Agricultural practices, market price volatilities, and the rise of organic farming have collectively contributed to this decrease in demand. Fertilizer deliveries have fallen sharply, especially for nitrogen, phosphate, and potassium fertilizers, dropping estimations ranging between 20% to 50%.

The geographic concentration of fertilizer demand aligns with the disposition of agricultural land in France, being more pronounced in the northern and western parts of the country. Interestingly, this doesn't necessarily correlate perfectly with the most agriculturally prolific regions in France, hinting at a more nuanced demand distribution driven by crop types and agricultural practices. Fertilizer demand in France is tightly coupled with the agricultural and agri-food market's trajectory, which commands a leading position in European production, accounting for approximately 18% of the continent's output.

Despite the declining trend in fertilizer usage, France's robust agricultural production—which sees a valuation in the billions—continues to signify the importance of fertilizers for yield optimization.

The offering of fertilizers: Key Fertilizer Market Players Shaping Agricultural Productivity

The global fertilizer market is vibrant and active, with several key players driving the industry forward through innovation, extensive product portfolios, and strategic market positioning. These companies play a critical role not just in sustaining the agricultural needs of their respective regions but also in influencing global agricultural practices and fertilizer standards.

• EuroChem Group AG and PJSC PhosAgro are both powerhouses originating from Russia. EuroChem is a globally operating group, which provides a wide range of fertilizers, while PhosAgro is known for its phosphate-based fertilizers, with a strong emphasis on environmental safety and purity of products.
• Nutrien Limited, born from the merger of Agrium Inc. and Potash Corp., is a Canadian titan that boasts an extensive network and offers a vast range of products, thereby catering to a diverse agricultural clientele. Their merger has resulted in a strengthened global presence and an expanded product line, enhancing their influence in the market.
• Yara International ASA, from Norway, stands out for its commitment to sustainable agriculture. They are at the forefront of producing fertilizers that support farmers in increasing food production in a sustainable way, with a sharp focus on environmental care.
• CF Industries Holdings Inc and The Mosaic Company, both from the United States, command significant portions of the market with their wide selection of products. CF Industries specializes in nitrogen fertilizers, while The Mosaic Company is one of the leading producers of phosphate and potash, essential nutrients for crop growth.
• Coromandel International Ltd, an Indian enterprise, is part of a growing Asian market and has made substantial headway with its comprehensive range of nutrient solutions and farm services, reflecting the rapid development of agriculture in its region.
• OCP S.A., hailing from Morocco, is recognized for its large-scale phosphate production and is a key player in contributing to global food security through the provision of essential fertilizers.
• Israel Chemicals Ltd, representing the innovative drive of the Israeli market, has a solid product lineup that caters to various agricultural and industrial needs, focusing on sustainability and technological advancements.
• K+S Aktiengesellschaft, a German entity, rounds off the list with its broad portfolio, including not just fertilizers but also salt products. The company places a strong emphasis on delivering both premium products and services tailored to modern agricultural methods.

These major players reflect the diverse and evolving landscape of the global fertilizer industry, each contributing their expertise and resources to meet the demands of a growing population and the ever-increasing need for sustainable agricultural practices. Their collective

Informations

• Nombre de pages : 30 pages
• Format : Version digitale et PDF
• Dernière mise à jour : 02/10/2023

Sommaire et extraits

Liste des graphiques

• Parts des exportations mondiales de la Russie
• Évolution du prix de l'urée
• Commerce européen extra UE d'engrais
• Evolution de la taille du marché mondial des engrais
• Chiffre d'affaires du secteur de la fabrication de produits azotés et d'engrais
• Production française d'engrais naturel en volume
• Production française d'engrais à base d'azote en volume
• Nombre d'entreprises dans l'industrie des produits azotés et engrais
• Nombre de salariés dans l'industrie des produits azotés et engrais
• Effectifs moyens des entreprises associées au code 20.15Z par région
• Part d'agriculteurs dans l'emploi en France
• Consommation d'engrais
• Livraisons d'engrais minéraux en France
• Répartition de la production agricole européenne en valeur
• Production agricole en France
• Indice des prix d'importation de produits azotés et d'engrais chimiques en base 100 2015
• Indice de prix de production des engrais et composés azotés pour le marché français en base 100 2015
• Indice de prix de production des engrais et composés azotés pour l'ensemble des marchés en base 100 2015
• Importations françaises d'engrais
• Principaux pays fournisseurs français d'engrais
• Exportations françaises d'engrais
• Principaux pays acheteurs d'engrais français