LONDON--(BUSINESS WIRE)--Technavio analysts forecast the global fertilizer spreader market to grow at a CAGR of more than 7% during the forecast period, according to their latest report.
The research study covers the present scenario and growth prospects of the global fertilizer spreader market for 2016-2020. To calculate the market size, the report considers the total units, in terms of volume, of new fertilizer spreaders sold across the globe in 2015. In addition, the report also covered the market size in terms of revenue.
Additional Technavio Insights: Three Major Benefits of Fertilizer Spreaders
Technavio consumer and retail analysts highlight the following four factors that are contributing to the growth of the global fertilizer spreader market:
- Augmented government support
- Need to improve production yield
- Labor scarcity
- Increasing focus on accuracy for high yield and productivity
Augmented government support
Government are supporting farmers by granting them credits, thereby enabling them to purchase key farm inputs such as fertilizers, and invest in farm machinery like fertilizer spreaders. Crop insurance programs also encourage farmers to increase their investment in fertilizers and related machinery. In countries such as Russia, India, Tanzania, Brazil, and the Czech Republic, the government subsidies to purchase agricultural machinery are resulting in an increase in the sales of tractors. This has resulted in the increased sales of tractor-trailed fertilizer spreaders as power-driven fertilizer spreaders are more cost-effective and efficient.
Through its Farmer Input Support Program (FISP), the government in Zambia is subsidizing about 80% of the fertilizer cost, and is thereby improving access to fertilizers for small and medium-scale farmers. This increase in the use of fertilizers is also contributing to the sales of fertilizer spreaders, especially the handheld and mounted spreader units.
Need to improve production yield
With the rise in population, the demand for agricultural products is increasing, which, in turn, has propelled farmers globally to improve production yield to cater to the demand. Availability of limited arable land and unfavorable fluctuations in climatic conditions further added to the demand for better yield. The quality of soil in many countries has degraded, and the use of an adequate quantity of fertilizers helps farmers increase the yield by 3-4 times.
According to Mantri Charan Kumar, a lead analyst at Technavio for research on retail goods and services, “Increase in crop acreage and the need to cover large areas quickly is encouraging many farmers to adopt smart farming practices, and use optimized spreaders to apply fertilizers. Small-scale farmers are also purchasing fertilizer spreaders to protect their soil from overuse of fertilizers, and increase yield.”
Labor scarcity
Until now, small-scale farmers, especially in sub-Saharan Africa and South Asian countries, have been relying on manual labor and animal-drawn tools for activities such as spreading fertilizers. In the present day scenario, the declining number of draught animals is leading to an increasing reliance on manual labor for farm activities. However, factors such as an aging rural population and an increase in off-farm income opportunities are leading to a decline in the availability of manual labor. For instance, Bangladesh is observing a transformational shift wherein the farm labor in rural areas is migrating to urbanized cities for employment opportunities in the garment industry, or to earn higher wages from self-employed tasks like pulling three-wheeled passenger carts. Such a lack of available labor is creating a necessity for mechanization, and is driving the sales of fertilizer spreaders.
Increasing focus on accuracy for high yield and productivity
Cost of fertilizers are increasing and farmers need to use the right quantity at the right time and location in order to get an improved crop yield and reduce the overspill of nutrients. The overspill of nutrients is leading to soil acidification, and the poor soil quality is adversely impacting the yield. Many farmers who use low-end models of fertilizer spreaders have also been facing issues like poor crop performance and wastage of fertilizer, owing to improper spreading.
“Unpredictable atmospheric conditions, such as changing temperatures and humidity during the day are other factors that impact the fertilizers' flow rate through spreaders. Such factors contribute to the need for premium quality fertilizer spreaders, which enable farmers to apply an accurate quantity of input, and thereby be more effective in getting higher yield and productivity,” says Mantri.
Browse Related Reports:
- Global Agricultural Micronutrients Market 2016-2020
- Nitrogenous Fertilizers Market in Brazil 2015-2019
- Agricultural Micronutrients Market in the US 2015-2019
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