Strong world economic growth is expected to continue in 2008, with China and India leading the way. As people in Asia and other developing regions continue to consume more food and shift toward higher-protein diets, the pressure to improve crop yields will increase – and with it, fertilizer consumption.
Based on these factors, PotashCorp is forecasting potash sales volumes to grow by 7 percent in 2008. This increase, combined with rising prices and per-tonne efficiencies gained through additional volumes, is expected to drive potash gross margin to unprecedented levels – approximately 2½ times the 2007 record. Consolidated net income could double, rising to between $2.0 billion and $2.3 billion.
