Doha: The GCC’s export-oriented fertiliser industry is set to play a key role in fortifying global food security, says a new report by the Gulf Petrochemicals & Chemicals Association (GPCA) and Nexant.
According to The Role of GCC Fertilisers in Addressing Food Security, upcoming fertiliser capacity additions for ammonia and urea products will be critical for the farmlands in South and South East Asia, highly populous regions which often lack natural resources to produce fertilisers for strengthening agricultural productivity. “In addition to gaining valuable export revenues for the region’s economies, fertiliser producers will soon make significant contributions to the global food banks,” said Dr Abdulwahab al Sadoun, Secretary General, GPCA. “By 2030, the world will need to feed an estimated 2 billion more people, so fertilizers will be crucial in ensuring that these individuals have access to edible, sufficient and nutritious food.”
The Gulf’s fertiliser capacity reached 42.7 million tonnes in 2013, nearly half of which was exported to markets across the world, as per GPCA data. The GCC’s fertiliser sector is also growing: production gained 4 percent from the previous year, while the global fertiliser industry grew by just 1.7 percent in the same period.
Fertiliser sector growth has been augmented by the GCC’s vast reserves of natural gas, essential for producing ammonia and urea fertilisers. With relatively low domestic demand, the Gulf’s fertiliser exports are set continue to rise in the long term.
“Due to the region’s arid and desert climate, the GCC has traditionally relied on food imports to feed its population,” continued Dr al Sadoun. “However, with the growing trend towards exporting fertilizers to major agricultural regions that have the world’s fastest population growth rates, the Gulf’s leadership can leverage these ties to develop closer relationships with major food producing regions like the Far East and South Asian countries. The growth of the GCC fertiliser industry, therefore, has the potential not only to overcome serious food security challenges, but also to raise the region’s profile as a major trade partner and producer of high-value commodities.”
The Peninsula
