As one of the primary macronutrients, potassium’s role in meeting global nutrition and food security needs cannot be understated. As the industry continues to adapt to meet the evolving demands of the global population, a few trends have come to the forefront in recent years. And while COVID-19 has added a new layer of unpredictability to the market, potash’s critical role in food production gives it a solid base to stand on, with market forecasters still predicting strong long-term demand.
Here are some of the major trends reshaping the potash industry.
SOP Gaining on MOP
Historically, potash used in the fertilizer industry has been Muriate of Potash (MOP) or Potassium Chloride (KCl), but a premium alternative, SOP, is quickly gaining ground.
Also known as potassium sulfate or sulfate of potash, SOP is stealing market share from MOP as an alternative with advantages for some crops. The addition of sulfur, combined with a lower salinity and reduced chlorides, makes SOP an excellent fit for boosting yield and crop quality in high-value or chloride-sensitive crop applications, with experts predicting a healthy growth rate in market demand in the coming years.
SOP is also gaining interest for its use in organic farming, which continues to grow as a market. In contrast to MOP, SOP holds potential for organic certification when not manufactured via synthetic production.
Growing Interest Around Alternative Sources of Potash
Similar to the move to SOP, fertilizer producers are increasingly exploring alternative and specialty sources of potash.
Chris Kozicki, FEECO Process Sales Engineer, commented: “We still have a lot of traditional projects coming through the doors, but we have seen a significant uptick in specialty projects – even in just the past few years.”
Some of the minerals being explored as an alternative source of the potassium nutrient include:
- Polyhalite
- Struvite
- Silicate rocks
- Langbeinite
- Leonite
- Granite dust
- Kelp Meal
- Wood Ash
- Green Sand
- Potassium nitrate
Kozicki notes that this exploration into alternative sources plays into the growing interest around specialty fertilizers and soil amendments brought on by the movement toward more sustainable nutrient management.
Premium Potash Products More Widely Accepted
In similar fashion, premium potash products are also becoming more widely accepted. While cost still remains a key factor in crop planning, the standard for products has been raised in the ultra-competitive market.
Further, growers are more willing to spend a little extra on a product that adds value to their nutrient program. This might be through enhanced nutrient performance, or the inclusion of a beneficial additive, or simply the selection of a higher-quality product to reduce dust issues and ensure application accuracy.
Two trends that seem especially dominant are the wet granulation of potash, as well as potash coating.
Potash Wet Granulation
Processing potash by wet granulation (also commonly referred to as pelletizing in this setting) continues to be investigated as an alternative to roll compaction.
Granules produced via wet granulation techniques provide several benefits to growers, including a significant reduction in dust, more accurate and predictable application, and faster nutrient delivery.
Potash Coating
In addition to reducing attrition and improving product handling and storage, coating is also becoming a widely used approach to create a specialty product through the inclusion of a beneficial additive. This might be to enhance the nutrition profile of the product or control release properties, among other things.
Australia Enters the Market
Australia has thrown its hat in the ring to bide for a spot as a global potash producer. The nation previously relied exclusively on imports of the nutrient, but with favorable market conditions, is looking to start up its own industry around domestic production. Several projects are in the works.
This comes not long after Saskatchewan took a hit to their competitive standing in the global market; in 2019, the province announced they were making changes to their tax structure – a move that would eliminate a popular tax credit, cutting into the industry’s profit margins and adding to the uncertainty already in place from Bill C-69, legislation that aims to revamp the approval process for a range of development projects.
Conclusion
While the ongoing pandemic has put new challenges on the potash market, potash continues to be a critical material in meeting global crop nutrition demands, and the trends causing shifts in the market, such as the switch from MOP to SOP, a broader acceptance of premium products, and Australia’s entry into the market, continue to reshape an industry that, up until recently, has remained largely unchanged.
FEECO has been serving the potash industry with custom equipment, process development services, and parts and service support since 1951, with many of the industry’s top companies relying on FEECO. For more information on our potash equipment or services, contact us today!