Demand for renewable fuel sources is generating a need for increased crop production – and more potash.
For vehicle owners around the world, the simple act of re-fuelling the family car is something that can no longer be taken for granted. Rising political tensions, a tight supply/demand balance for oil and high energy prices have consumers in many countries asking questions about their fuel supply.
Increasingly, they are discovering that the seeds of a solution are being planted in farm fields around the world.
Crops like corn, sugar cane and oil palm are being viewed as viable alternatives in the energy debate as they provide a renewable source for the production of ethanol and other biofuels. To grow more of these crops, more fertilizer – especially potash – will be needed.
Over the past four years, world production of ethanol doubled to more than 12 billion gallons per year. Approximately 1 billion gallons of biodiesel, the second most popular alternative fuel made from plant sources, were also produced.
This growth is expected to continue as many countries work to secure their energy supply and biofuels become more economically attractive. According to the Food and Agricultural Organization (FAO) of the United Nations, biofuels could fill 25 percent of the world’s energy needs within 20 years.
This, however, is creating a competition between food and fuel for many crops. The world’s growing population, much of which has benefited from higher incomes in recent years, is demanding more high-quality food as well.
That is placing new demands on the world’s agricultural land – demands that make it even more important to replenish the soil’s nutrients to allow for sustainable production.
Many of the crops used for both food and biofuel require significant potash applications to protect yield and quality. That is fuel for growth – for biofuels and the potash industry.
This document/release contains forward-looking statements. These statements can be identified by expressions of belief, expectation or intention, as well as those statements that are not historical fact. These statements are based on certain factors and assumptions as set forth in this document/release, including foreign exchange rates, expected growth, results of operations, performance and businesses prospects and opportunities. While the company considers these factors and assumptions to be reasonable based on information currently available, they may prove to be incorrect. A number of factors could cause actual results to differ materially from those in the forward-looking statements, including, but not limited to: fluctuations in supply and demand in fertilizer, sulfur, transportation and petrochemical markets; changes in competitive pressures, including pricing pressures; risks associated with natural gas and other hedging activities; changes in capital markets; changes in currency and exchange rates; unexpected geological or environmental conditions, including water inflow; and government policy changes. Additional risks and uncertainties can be found in our Form 10-K for the fiscal year ended December 31, 2006 under the captions "Forward-Looking Statements" and "Item 1A - Risk Factors" and in filings with the U.S. Securities and Exchange Commission and the Canadian provincial securities commissions. Forward-looking statements are given only as at the date of this document/release and the company disclaims any obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.
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