The world's population continues to grow rapidly, and it is projected that it will reach 9.7 billion people by 2050. This is a positive factor for potash investors.

Having a larger population will have many implications. One of these is the need for more food. Increasing the population will lead to more urbanization, and less farmland to work on. This will mean that farmers will need to increase their crop yields.

This is where fertilizers such as potash can help. Potash fertilizer is not only a good source of essential nutrients for food, but it also increases water retention and strengthens the roots and stems of plants. Potash fertilizer can increase crop yields and food production.

Potash and phosphate are becoming more important for crop enhancement and will play a significant role in the growing of the cannabis industry.

Many investors are curious about potash and how they can get exposure to the market. Continue reading to learn more about investing in potash.

This article continues beneath the Agriculture Investing Table of contents.

Table of Contents: Agriculture Investment

These articles provide an overview of agriculture investing from Agriculture Investing News.

Start Investing in Agriculture

• How to invest in agriculture
• How to Invest in Agriculture: Food Security is Key
• Fertilizers: What is the Difference between Potash and Phosphate?
• Potash Investment Opportunities
• Potash Fertilizers - What is the Difference between SOP and MOP?
• Ten Top Countries for Potash Production
• Phosphate: How to Invest
• Top Phosphate Mining Production by Country

Potash investing: What is potash?

It is important to first understand what potash means. Potash is an alkaline potassium compound most commonly used for fertilizers. Globally, 95 percent of potash is used for food production.

Potash refers to potassium compounds as well as potassium-bearing material. It also includes potassium chloride. This is a salt-like mineral, that is either white or colorless by nature, but can sometimes take on a pink or a red hue due to impurities like clay.

The majority of potash is made from salt from underground seas that have evaporated. There are two types of potash: the sulfate and muriate.

SOP is used for high-value crops such as tea, coffee, tea, tobacco and nuts. MOP is more widespread and is used on vegetables like sugar beets and celery.

Potash investment: Supply and Demand

The US Geological Survey has released the latest data on potash. Global output was 43 million MT in 2020, while consumption was 41 million MT. The global potash consumption is expected to increase in 2021.

Canada was the world's top producer of potash last year with a total output of 14,000,000 MT. The vast majority of this was produced in Saskatchewan.

With a potash production of 7.6 millions MT, Russia was the second largest producer. With a production of 7.3 million MT, Belarus was third.

Oversupply has caused a drop in potash prices and has put pressure on potash producers. Despite this, the outlook for potash is quite positive. As noted, long-term population growth will likely drive even greater potash demand.

Potash investing: Companies to Watch

Many investors are keen to invest in the potash sector due to the strong outlook. Potash stocks are a popular way to invest in this sector.

There are many companies to choose from, so make sure you do your research. You can start your research by looking at our lists of potash companies both on the ASX and TSXV.

Securities Disclosure - I, Melissa Pistilli have no direct investment in any company mentioned.

By: Melissa Pistilli
Title: Ways to Invest in Potash
Sourced From: investingnews.com/daily/resource-investing/agriculture-investing/potash-investing/ways-to-invest-in-potash/
Published Date: Thu, 18 Nov 2021 21:50:00 +0000

-----------------------------