Food Supply Chain
Within the agricultural sector, fertilizer producers are the first link in the global food supply chain. Farmers require these nutrients to increase crop yields, and fertilizer companies have become the primary producers of commodities that are critical for global food supply growth. The Global X Fertilizers/Potash ETF offers targeted exposure to fertilizer producers around the world, giving investors access to a critical agricultural industry.

Nutrients for Emerging Markets
Emerging markets in Asia and Latin America account for almost two-thirds (2/3) of global consumption to support food production for their large and growing populations.
Global fertilizer consumption is growing fastest in these emerging markets, with historical annual growth rates of more than 3% over the past 15 years.
Global economic growth is predicted to drive food demand (especially high value foods such as meat, fruit and vegetables) in emerging economies, thereby strengthening demand for fertilizers (Food and Agricultural Organization, 2010).
Source: PotashCorp 2010, unless otherwise noted.
Nutrients for Emerging Markets
China and India are the largest fertilizer consuming countries, together accounting for more than 40% of world fertilizer use.
China typically imports about 70% of its potash requirements, and annual consumption is expected to return to pre-2008 growth levels of nearly 10% per year.
Demand Outpacing Supply
An estimated 660 million tons of grain and oilseed consumption are expected by 2020, approximately 30% higher than current demand.
As grain areas are converted to vegetable and fruit production to meet higher demand, fertilizer use will increase – the average application rates for the latter are about double those for grain crops (Food and Agricultural Organization, 2010).
Source: PotashCorp 2010, unless otherwise noted.
Demand Outpacing Supply
Purchasing power growth and the resulting diet shifts in emerging markets are driving crop usage: soybean demand has grown over 9% per year over the past ten years, driven by the need for high-protein animal feed and edible cooking oil.
In China, corn consumption – primarily as animal feed – has grown nearly 3% for a decade while corn yields have risen by less than 2% annually, drawing down inventories.
In India, grain yields are less than one half of those in the US, with improper fertilization being a key reason for lower yields.
Source: PotashCorp 2010, unless otherwise noted.
 
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