In 2008, along with most??other commodities, the market for fertiliser had reached its highest price peak ever. It gave a taste to the people in the business how much money that could be had in feeding the world. Then the market eased and the takeovers begun. Strategic acquisitions by the major players meant that they were securing their positions to await the next price peak. So far this year, the biggest acquisition came from the Finnish company??Yara which acquired Terra, an American firm, for $4.1 billion.
The explanation for all this is undoubtedly the open maw and changing dietary habits of the world???s fast-expanding population. It is expected to grow by around a third by 2050 to over 9 billion people, who will all need to be fed. Moreover, as people grow more prosperous they eat more meat, which will require even more crops to provide feed for livestock… The gods, it seems, are smiling on the fertiliser-makers.