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Overview 2011 Review: Part 1 - What Drives Fertilizer Demand?

Launched in September, the 2011 Overview of PotashCorp and Its Industry offers a snapshot of the factors that drive our strategy and influence our performance. Illustrated with more than 100 full-color graphs available both online and in print, the Overview reveals how we manage our business — and why.

Here’s a snapshot of what you will find:

What Drives Fertilizer Demand?

While parts of the developed world continue to deal with economic uncertainties, some things remain unchanged: Population is increasing, people in developing countries want better diets, per-capita arable land and water resources are declining. To keep pace with rising food demand, farmers must strive to increase yields, and fertilizer — especially potash — can help them reach that next stage of growth.

In many cases, the countries where population is rising dramatically are also leading economic growth. As economies grow and incomes rise, the priority for most people in emerging nations is to improve their diets. The shift towards more balanced diets — including increased consumption of fruits, vegetables and protein from meat, eggs and fish — is expected to be a long-term driver of global food demand.

Meeting the rising demand for food will require a commitment to high-yield farming. This is most apparent in developing countries where crop yields are a fraction of those in the developed nations. This disparity highlights the importance of best management practices including balanced fertilizer applications, in particular the use of potash in conjunction with nitrogen and phosphate. We expect improved fertilization practices over time will play a significant role in improving yields in these countries.

Driven by agronomic need and supported by strong prices for a wide range of crops grown globally, farmers are responding to the challenge of increasing production by applying more fertilizer. While all three nutrients are critical for the development of healthy plants, we believe potash has the greatest opportunity for growth due to its historical under-application in developing countries. As demand for this nutrient grows, we are preparing to meet the needs of our customers and farmers in the years ahead.

This review provides a glimpse of the information inside our 2011 Online Overview Book. To learn more, the report is available online at Overview of PotashCorp and Its Industry 2011

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