Emerging economies and bad weather are putting strains on global food supplies, pushing farmers to expand their plantings and thus increasing demands for potash-based fertilizers. This is the view of Potash Corp. CEO Bill Doyle in an interview posted on Mineweb.com, explaining the 75% increase in 2Q company earnings. [right, potash salt. Credit USGS]
The article also notes that North American potash inventories at the end of June were 26% below the average of the last 5 years.
There is a worldwide race on to develop new potash mines to meet demand, but there are concerns among some analysts that there could be an overcapacity down the road. Arizona's Holbrook basin deposit is currently a center of intense exploration by at least 3 companies. The deposit is one of the shallowest known, is close to rail and an interstate highway, and could help meet U.S. demand.