The growing global population, climate change, and water scarcity problems have joined forces to put a strain on the production of agricultural products globally. With a growing demand, the need to generate higher crop yields from the existing arable land is rising. This is where fertilizer companies like Archer-Daniels-Midland Co (NYSE:ADM), CF Industries Holdings, Inc. (NYSE:CF) and The Mosaic Company (NYSE:MOS) enter the picture. For healthy growth, plants require three main nutrients: Nitrogen, Phosphorus and Potassium (NPK). Farmers use fertilizers to fill the soil deficiencies in these nutrients for healthy growth of their crops.

Before we delve into the recent market trends for the fertilizer industry, we need to understand the basics of how fertilizers are made. Basic Nitrogen-based fertilizers, such as urea, urea ammonium nitrate (UAN), and ammonium nitrate, require ammonia as a feedstock, produced most commonly from natural gas, and coal, in some cases. On the other hand, Phosphorus and Potassium based fertilizers require mineral deposits of these elements.

Fertilizer prices have risen significantly in the recent past and may remain elevated at least in the near-term. Urea prices surpassed their 2008 peaks, while phosphates and potash prices are close to 2008 levels, according to the World Bank’s Commodity Markets Outlook. The Russia-Ukraine conflict led to sanctions on Russia and Belarus, the two leading producers of fertilizers. The crisis was further exacerbated with the reduction in ammonia production due to higher natural gas prices. In addition, China, the largest producer of Nitrogen and Phosphorus, imposed export restrictions to cater to domestic demand.

We have picked the top 15 fertilizer companies based on their market capitalization that are involved in the production and delivery of fertilizers. These companies are some of the largest producers of fertilizers worldwide, with products including nitrogen, potash, and phosphate-based commodity fertilizers, as well as complex and specialty fertilizers.

Apart from the public companies included in this list, there are several privately-owned or state-owned companies that hold a significant market share in the fertilizer industry. Belarus-based Belaruskali OAO is the world’s second largest producer of potash. Prior to the sanctions imposed on the country, the company, through state-owned Belarusian Potash Company, exported more than 10 million tons of its products per annum to 140 countries globally. China, Brazil, and India were its major customers.

Moscow-based UralChem is a privately-owned producer of nitrogen and phosphate fertilizers. It is the second largest ammonium nitrate producer in the world with production capabilities of 2.7 million tons of ammonium nitrate, 2.2 million tons of ammonia, 0.8 million tons of MAP and DAP, 0.8 million tons of complex fertilizers and 0.5 million tons of urea.

EuroChem is a privately-held vertically integrated fertilizer producer with mining assets in Russia, Kazakhstan, and Brazil, production assets across four continents, and a global sales and distribution network. The company ranks among the top five mineral fertilizers producers globally, with 27 million tons of fertilizer produced in 2021.

Source: yahoo finance