You are on page 1of 1

IMPORTANCE OF FERTILIZER

Food consumption is likely to rise in emerging MARKETS where economic growth res
ults in better income per capita because higher income would lead to increased f
ood consumption and hence greater grain demand. With growth in arable land dimi
nishing as a consequence of rapid soil erosion, fertilizer usage will continue t
o play an important role in food production. Despite bouts of industry swings i
n the intermediate terms, secular industry dynamics will remain robust for the i
ndustry because of the estimated 5-6% p.a. long terms growth in fertilizer deman
d in Pakistan and the largely inelastic food demand.

Benefits to the Crops


Fertilizer provides a number of benefits not only to the plants but also to the
soils. The proper usage of fertilisers ensures that the soils retains its produc
tivity and does not lose the nutrients that the crops need for sustained growth.
Fertiliser gives the soil the nutrients which it is deficient in and also reduc
es top soil erosion. Fertilizer also improves the yield of the crops
this is des
cribed in a later section of this report. Another benefit from fertilizer usage
is that it provides better resistance to plants from diseases.
The Nitrogenous Fertilisers provide the plant with Higher Protein Content, Color
and Growth.

The Phosphorous Fertilisers promote strong, healthy root development and helps p
lants mature more rapidly and thus aids in blooming and seed formation. They are
also critical for the synthesis of energy regulating substances in plants

The Potassium Fertilizers raise the resistance of plants to diseases and promote
s growth from root to stack. They also increase the plumpness of grains and seed
s, and provides winter hardiness to legumes and other crops.

Diminishing Growth in Arable Land


Diminishing growth in arable land must be compensated through higher crop yields
and or increased use of recycled land. We believe this is best done through bal
anced fertilization in order to sustain food security for a population growing a
t 2.3% per annum. Balanced fertilization suggests the use of nutrient supply sys
tems that maximize efficient use of nutrients by reducing losses of nutrients, i
mproving nutrient cycling, and integrating inorganic fertilizer use with organic
inputs such as nitrogen.
The use of fertilizer becomes necessary given that growth in arable land has bee
n diminishing and food import is increasingly costlier. While nitrogenous ferti
lizers are predominantly used (NPK ratio 4:1:0.06), government and privately ind
uced awareness of phosphoric and potassic type fertilizers are like to promote t
heir greater usage. The NPK ratio a temporary area demand / supply imbalance in
the intermediate term is likely to press industry margins (assuming intended cap
acities come on line and on time) thus long term industry outlook is positive gi
ven that more grain will likely be required to feed a growing population.