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GROW ORGANIC

Increased Consumption and Demand

Rapid industrialisation, urbanisation and expansion of the world’s population have all increased the global demand for food but also contributed to significant land degradation from commercial agricultural activity.

The need for food security and supply due to a growing global population and consistent demand from ongoing soil degradation are key fundamentals driving the ongoing growth of the market but there is also an increasing trend towards organic farming linked to consumer focus on health and the environment.

 

North American organic rock phosphate fertiliser consumption is forecast to grow from 210ktpa to 360ktpa by 2027, 14% in USD terms and demand growth is forecast to exceed supply. This increased consumption of organically-produced products has increased the demand for organic inputs, including organic fertilizers.

PhosAgri is a product that supports sustainable agricultural production, contributes to continued soil health and can also be used in blending for transitional farming requirements as it enhances soil quality

Pricing

Due to consumer interest in and demand for sustainable organic produced products, producers are able to sell organic products at a higher price than their conventional alternatives.  Depending on the specific product, price premiums for organic foods range from 30 % - 100 % higher.  This high sales price provides producers with increased margins and net revenue for their crops. 

Market

The organic market consists of organic food products including produce, meat, grains, and dairy. US producers of organic food are required to follow regulations set by the USDA. Some of these regulations include:

  • No genetically modified organisms (GMOs), synthetic fertilizers, or synthetic pesticides.

  • Maintenance of healthy soils through practices including crop rotation and cover crops.

  • Completion of certification audits.

Despite more producers switching to organic methods, there is still a shortage of US-produced organic products, especially corn. In order to fulfill market demand for organic animal products, producers must currently import organic feed.

 

The organic fertilizer market consists of a variety of products including mined materials, green manures, and agricultural byproducts. The major sources of organic phosphorus fertilizer are rock phosphates, bat or bird guano, and bone meal.

Trends


 

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