The world’s inhabitants is rising quickly and is predicted to succeed in over 9.7 billion by 2050.
This case is creating constructive fundamentals for the agricultural sector, together with the potash market. A bigger inhabitants means a lot greater quantities of meals shall be wanted; nevertheless, with extra folks will come additional urbanization and fewer farmland with which to work, which means farmers can have no selection however to extend crop yields.
That is the place fertilizers like potash are available in. Unsurprisingly, many buyers are questioning what potash is and the way they will acquire publicity to the potash market. Learn on to seek out out extra about potash investing, and whether or not it could match into your portfolio.
What’s potash?
Potash is a time period that refers to compounds and minerals that include potassium salts. It’s naturally white or colorless, however ore generally takes on a pink or purple shade as a consequence of impurities resembling clay. Most potash comes from salt left over from historic evaporated seas that lie underground.
There are a number of various kinds of potash, together with sulfate of potash (SOP) and muriate of potash (MOP), which include potassium sulfate and potassium chloride respectively.
What’s potash used for?
Potash is mostly utilized in fertilizers. All in all, 95 % of the world’s potash provide is used to develop meals. Potash fertilizer not solely supplies important vitamins to meals, but additionally improves water retention in crops and strengthens their roots and stems.
SOP is used on high-value crops, resembling a wide range of vegatables and fruits, nuts, tea, espresso and tobacco, and is seen as premium high quality. MOP is extra frequent, and is often used on greens resembling sugar beets, celery and Swiss chard.
Potash provide traits
In accordance with the US Geological Survey’s newest information on potash, international potash manufacturing got here in at 48 million metric tons (MT) in 2024 and consumption totaled 38.8 million MT. The potash sector is affected by oversupply, and that has created decrease costs and put stress on potash producers.
The potash market has confronted volatility lately, notably from geopolitical conflicts. The company estimates that in 2022 potash fertilizer demand decreased to between 35 to 39 million tons from 40.6 million tons in 2021 because of the Russian-Ukraine conflict.
Canada stands out because the prime potash-producing nation with output of 15 million MT in 2024, the overwhelming majority of which was from the province of Saskatchewan.
Russia is the world’s second largest potash producer, with output of 9 million MT in 2024. Reclaiming its spot because the third largest producer, Belarus’ potash output rose to 7 million MT in 2024. It had fallen considerably within the prior two years, and it ranked at fourth place in 2023 with manufacturing of 4.5 million MT.
Russia’s conflict in Ukraine and its use of Belarus as a staging floor have led to export sanctions on the 2 nations, which previous to 2022 accounted for a mixed 40 % of worldwide potash provide. In 2024, that determine was 33 %.
All eyes shall be on the Canadian potash market in 2025 as US President Donald Trump has threatened as much as 25 % tariffs on all items imported from Canada into the USA. Whereas he delayed the tariffs by one month in early February, it stays to be seen whether or not they’ll in the end nonetheless be enacted.
Tariffs on Canadian potash would probably end in greater prices for US farmers and customers on the grocery retailer, as Canada represents greater than 86 % of annual US potash imports, in line with Josh Linville, vp of fertilizer at StoneX.
“Whereas the US does produce potash, it isn’t practically giant sufficient to fulfill our demand,” Linville informed the Investing Information Community in an e mail.
Potash demand traits
Potash demand is predicted to climb within the coming years. Priority Analysis expects the world’s potash market to develop at a compound annual development price (CAGR) of 4.93 % between 2024 and 2033 to succeed in US$97.15 billion.
The agency’s analysts attribute this secure development in potash demand to rising ranges of financial improvement and rising per capita meals consumption because the world’s inhabitants continues to rise.
“The demand for potash is considerably influenced by rising economies resembling China, India, and Brazil, which have sizable agricultural industries,” the report states.
Inhabitants development is subsequently resulting in elevated urbanization and fewer accessible agricultural land. Different demand facet traits for potash embrace the expansion in sustainable agricultural practices and technological advances in agricultural science like genetically modified crops and precision farming.
By way of regional demand, Asia Pacific represents the most important market share coming in at 38 % in 2023. Governments within the area are enacting insurance policies and subsidies to encourage potash use amongst farmers with the intention to generate greater crop yields to feed rising populations.
The North American market is predicted to expertise probably the most fast development over the forecast interval, with a CAGR of 5.11 %. On this area, potash is a needed element for sustained agricultural output as many areas of the continent have nutrient-deficient soils.
Methods to put money into potash
For buyers within the potash house and inspired by its outlook, there are a variety of entry factors for investing within the potash market, together with potash shares and potash ETFs. We check out each methods to put money into potash beneath. All information and knowledge was present as of January 30, 2025.
Potash shares
There are a lot of potash shares to contemplate, so it is necessary to do your analysis. There are a selection of publicly traded mining firms with shares listed on main exchanges together with the TSX, ASX and the NYSE. Buyers typically select to start with giant producers within the potash sector. All shares mentioned beneath had market caps above $5 million of their respective currencies on the time information was collected.
Main potash mining shares
BHP (ASX:BHP,NYSE:BHP,LSE:BHP)
BHP is a multinational diversified mining firm creating the Jansen potash mine in Saskatchewan. It’s set to come back on-line in late 2026, and anticipated to supply 8.5 million metric tons of potash yearly.
Compass Minerals Worldwide (NYSE:CMP)
Compass Minerals is a number one producer of SOP in North America. Its SOP plant is situated in Wynyard, Saskatchewan, and it produces SOP utilizing large-scale photo voltaic evaporation at its Ogden operations in Utah’s Nice Salt Lake.
ICL Group (NYSE:ICL)
Israel Chemical compounds Restricted (ICL) Group is a multinational specialty minerals and chemical substances firm centered on potash, phosphate and superior specialty fertilizers. The corporate produces potash from its mines in Israel and Spain.
Intrepid Potash (NYSE:IPI)
Intrepid Potash is the one producer of MOP in the USA. It operates an underground mine and a photo voltaic evaporation mine in Carlsbad, New Mexico, in addition to photo voltaic evaporation mines in Wendover and Moab, Utah.
Okay+S Aktiengesellschaft (OTCQX:KPLUF,ETR:SDF)
Okay+S is a Germany-based chemical firm and the main potash provider in Europe. The corporate additionally has manufacturing amenities in North America and South America.
Mosaic (NYSE:MOS)
Mosaic is an American chemical firm which produces and markets concentrated phosphate and potash crop vitamins. The corporate’s North America Enterprise is answerable for roughly 34 % of estimated annual potash manufacturing on the continent, and its Belle Plaine mine in Saskatchewan is among the largest-producing potash answer mines on this planet.
Nutrien (TSX:NTR,NYSE:NTR)
Nutrien is Canada’s largest potash firm by far, shaped by way of a merger of Agrium and PotashCorp. The corporate has a potash manufacturing capability of over 27 million MT from its six potash mines in Saskatchewan.
Junior potash mining shares
Agrimin (ASX:AMN)
Agrimin is creating its Mackay mission in Western Australia, which it says shall be shovel prepared in 2025. In accordance with the corporate, the Mackay mission comprises the world’s largest recognized undeveloped mineral sources of brine-hosted SOP.
Gensource Potash (TSXV:GSP)
Gensource Potash is creating the Tugaske mission in Saskatchewan. As soon as in operation, the corporate estimates it is going to produce a minimal of 250,000 MT of MOP per yr.
Highfield Sources (ASX:HFR)
Highfield Sources is advancing on its near-term manufacturing stage Muga MOP mission in Spain. The mission is anticipated to supply greater than 1 million MT of MOP per yr.
Karnalyte Sources (TSX:KRN)
Karnalyte Sources is a complicated development-stage firm centered on its construction-ready Wynyard potash mission in Central Saskatchewan.
Sage Potash (TSXV:SAGE,OTCQB:SGPTF)
Sage Potash is creating its flagship mission the Sage Plain potash property within the Paradox Basin of the US state of Utah. As soon as in operation, the mission is estimated to supply 150,000 MT of potash yearly, with plans to develop.
Verde AgriTech (TSX:NPK,OTCQB:AMHPF)
Verde AgriTech is an agri-tech firm centered on making progressive merchandise that promote sustainable agriculture. Its primary asset is Cerrado Verde, which holds Brazil’s largest recognized potash deposit, with an NI 43-101 useful resource of three.32 billion MT.
Western Sources (TSX:WRX)
Western Potash, a subsidiary of Western Sources, is creating a potash answer mine at its Milestone mission in Saskatchewan centered on MOP manufacturing. Milestone is near Mosaic’s Belle Plaine mine.
Potash ETFs
Those that need extra broad publicity might need to purchase shares of an exchange-traded fund that features potash shares. Listed here are a number of to get you began.
VanEck Agribusiness ETF (ARCA:MOO)
VanEck Agribusiness ETF follows the value and yield efficiency of the MVIS World Agribusiness Index (MVMOOTR), which tracks the general efficiency of firms concerned in lots of areas of agribusiness, together with agri-chemicals and fertilizers. The fund’s prime holdings embrace Nutrien and Mosaic.
IShares MCSI Agriculture Producers ETF (ARCA:VEGI)
IShares MCSI Agricultural Producers tracks the funding outcomes of an index composed of worldwide equities of agribusiness firms, together with fertilizer producers. Nutrien, Mosaic and ICL Group are among the many fund’s prime holdings.
IShares World Agriculture Index ETF (TSX:COW)
IShares World Agriculture Index ETF seeks to copy the efficiency of the Manulife Funding Administration World Agriculture Index. Its prime holdings embrace Nutrien, Mosaic, Intrepid Potash and ICL Group.
That is an up to date model of an article first printed by the Investing Information Community in 2016.
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Securities Disclosure: I, Melissa Pistilli, maintain no direct funding curiosity in any firm talked about on this article.
Editorial Disclosure: Sage Potash is a shopper of the Investing Information Community. This text will not be paid-for content material.
Editorial Disclosure: The Investing Information Community doesn’t assure the accuracy or thoroughness of the data reported within the interviews it conducts. The opinions expressed in these interviews don’t replicate the opinions of the Investing Information Community and don’t represent funding recommendation. All readers are inspired to carry out their very own due diligence.
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