Market Trends of australia fertilizer Industry
Australia has witnessed an increase in the acreage of field crops since 2021. The acreage increased by 2.8% between 2021 and 2022
- Wheat, barley, canola, sorghum, and cotton dominate Australia's field crop landscape. Wheat, in particular, holds the lion's share, covering 50.2% of the total field cropland. The leading states in field crop production are Western Australia, New South Wales, South Australia, Victoria, and Queensland. However, these states grappled with a severe drought in 2019, resulting in a 9.5% drop in acreage compared to the previous year.
- Since 2021, Australia has witnessed a notable increase in field crop acreage, with a 2.8% increase between 2021 and 2022. This surge can be attributed to both global and domestic demand for agricultural products, particularly wheat, barley, sorghum, and canola. Notably, a significant portion of Australian wheat is exported, with a remarkable 64% surge in exports seen in 2022-23 compared to 2019-2020.
- The expansion of acreage is also fueled by rising farmer incomes, buoyed by favorable seasonal conditions and surging commodity prices. Additionally, the ongoing grain dispute between Ukraine and Russia, centered around the Black Sea, has further bolstered Australian wheat prices, benefiting local farmers.
- Government initiatives, including subsidies and incentives, have played a pivotal role in encouraging farmers to expand their field crop acreage. These policies, aimed at boosting agricultural production and export potential, were evident in the Australian government's USD 30 million investment in 2023. This funding was specifically earmarked to help grain growers navigate risks such as drought and market volatility.
- Given the trends of expanding crop acreage, rising farm incomes, robust government support, and growing global and domestic demand, the demand for fertilizers is poised to surge.
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Among field crops, wheat stands out with its significant requirement of 228.8 kg per hectare
- Major field crops, including corn, rice, wheat, sorghum, soybean, canola, and cotton, have varying nutrient requirements. Wheat tops the list, requiring 228.8 kg/hectare, followed by rice at 155.4 kg/hectare, corn at 148.4 kg/hectare, cotton at 119.1 kg/hectare, canola at 110.0 kg/hectare, sorghum at 95.2 kg/hectare, and soybean at 61.2 kg/hectare. These primary nutrients are crucial for the healthy growth and optimal grain production of field crops.
- Among the primary nutrients, nitrogen is the most heavily applied, with an average rate of 221.4 kg/hectare. Nitrogen plays a pivotal role in grain production, particularly in leaf and stem development, which directly impacts photosynthesis and grain formation. Phosphorus, another essential nutrient, is typically applied as phosphate fertilizers like diammonium phosphate (DAP) or monoammonium phosphate (MAP), at an average rate of 60.1 kg/ha.
- Potassium is vital for plants, aiding in water absorption, enzyme activation, and overall health maintenance. On average, 90.2 kg/hectare of potassium is applied. In Australia, the agricultural sector grapples with a salinity problem, affecting over a million hectares of previously productive land. Consequently, the application of potash, a potassium fertilizer, is on the rise in the country.
- It is important to note that primary nutrient requirements can vary based on factors like soil quality, crop variety, and regional conditions. Given their significance as the main nutrient source for crops, the application rates of primary nutrients are expected to witness substantial growth in the coming years, driven by concerns about soil depletion and leaching.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- The expansion of cultivation in Australia led to an increase in acreage by 10.2% between 2017 and 2022
- Manganese had the highest application rate of 12.2 kg/ha in horticulture crops in 2022
- In 2023, the average application rate of secondary macronutrients accounted for 32.7 kg/ hectares
- Improved water resource management and infrastructure development have made it possible to equip more agricultural land for irrigation purposes in Australia
- Manganese, copper, zinc, and iron had the highest application rates of 9.7, 4.1, and 3.3 kg/hectare, respectively, in 2023
- Manganese, copper, zinc, iron, and boron are the region's most widely used micronutrients for vegetable crops
- In Australia, onion, cabbage, and peas have a major secondary macronutrient application rate compared to other vegetable crops
