Phosphoric & Phosphates Fueled by Rising Food Demand

November 30, 2022

A significant milestone was reached in recent weeks. The total world population passed 8 billion people.

We’ve come a long way since 1980, when the total world population was just over 4 billion people. As world population growth accelerates, demand for food increases as well. Where there is demand for food, there is demand for fertilizers. Where there is demand for phosphate fertilizers, there is demand for Phosphoric Acid.

Phosphoric Acid is an intermediate for many fertilizer products and phosphates, including Diammonium Phosphate (DAP), Monoammonium Phosphate (MAP), Triple Super Phosphate (TSP), and others. Of all the applications of this necessary chemical, fertilizers is by far the largest consumer, consuming approximately 85% of total Phosphoric Acid produced. The growing demand for Phosphoric Acid for use in agricultural fertilizers is the primary reason why prices have risen and supply has been tight.

Regional supply interruptions have also contributed to the rising cost and tight supply of Phosphoric Acid. For example, one U.S. Phosphoric Acid plant has recently declared Force Majeure due to an ‘unplanned event’. China’s COVID lockdowns have disrupted supply chains there with plant shutdowns, shipping issues, etc. The Russia-Ukraine conflict has also affected phosphate-based fertilizer and created additional demand regionally as other countries have had to pick up the slack of what is not being produced there.

One slight restraint on the Phosphoric Acid market is found in government initiatives for the development of GMO seeds. These do not require fertilizer, but at present, there has not yet been any significant drop in fertilizer demand.

With more questions on the current climate of the Phosphoric Acid and Phosphates market and how it may affect you, reach out to a representative. CORECHEM looks forward to supplying your Phosphoric Acid and phosphates needs!