Research and Markets: Fertilizers Market in Argentina - Fertilizers Market in Argentina Thrives as the Country Steps up Agricultural Production

DUBLIN--(BUSINESS WIRE)--Research and Markets (http://www.researchandmarkets.com/research/c67d27/fertilizers_market) has announced the addition of Frost & Sullivan's new report "Fertilizers Market in Argentina" to their offering.

This report Fertilizers Market in Argentina' provides the current status of the market and includes a detailed discussion of major industry challenges and market drivers and restraints. In this research, Frost & Sullivan's expert analysts thoroughly examine the following: nitrogen-, phosphorus-, potassium-, and sulphur-based fertilizers.

Fertilizers Market in Argentina Thrives as the Country Steps up Agricultural Production

Although the fertilizers market in Argentina had run into rough weather during 2008 and 2009 due to tensions between the agricultural sector and the Argentinean Government, and negative climate conditions, it resumed its upward growth trajectory in 2010. Consistent growth is expected once the pre-recession volume levels are reached, at a rate corresponding to a market approaching maturity. Favorable climate conditions, a stable pricing structure, and a positive cost benefit relation (lower fertilizer prices than 2008 and higher international grain prices) had helped uplift prospects for the market. Great expectations are being set on the growth of the fertilizer industry, as the agricultural sector seeks to augment its productivity. Despite the agricultural crisis experienced during the last few years, Argentina remains one of the major exporters of agricultural products worldwide.

There is an increasing pressure on the farmers to increase crop yields to supply sufficient food for the growing global population. As the global demand for food increases, this country is likely to become a leader in agricultural exports, being one of the few countries with potential areas for cultivation expansion left, notes Industry Analyst Isolina Lopez Rivarola. With the increase in agricultural production the fertilizers market will grow in tandem.

During the past years, approximately 65 percent of fertilizers consumed were imported. Argentina imports a small share of its nitrogen-based fertilizers and most of its phosphate-based ones. Furthermore, Argentina does not have natural resources of some key materials.

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Over the past few years, the slow pace of fertilizing activities was perceived as a major factor currently impacting demand. During 2010, agricultural producers began to compensate for low fertilizer investments in past harvests. Currently, potential yields are high, and higher levels of nutrient reposition are hence required. The current political scenario, droughts, unpredictable climate, and the level of inflation act as a restraint for the growth of this market. Obtaining stability and developing foreseeability is a major challenge within the market. To plan fertilizing crops in advance, with the amount of dosage applied being fixed, agricultural producers require a high degree of knowledge regarding the future to lower the risks of the investments. If market uncertainties continue to present themselves constantly within agricultural markets, the fertilizers market will not stabilize, explains the analyst. Unpredictability can be experienced from a climate, financial, legal, and macro economical point of view.

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